Nigeria’s fuel industry is facing a grim reality as foreign exchange rate fluctuations have left numerous petroleum product depots empty.
Oil marketers sounded this alarm on Thursday, expressing concerns about the impending increase in the landing price of Premium Motor Spirit (PMS), commonly known as petrol, which could surge to N720 per litre.
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At the National Executive Council meeting of the Natural Oil and Gas Suppliers Association of Nigeria in Abuja, Benneth Korie, the National President of NOGASA, highlighted the dire situation that many depots are currently grappling with.
He emphasized that several depots have been left nearly deserted as their owners struggle to secure bank loans due to exorbitant interest rates.
Korie elaborated on the challenges, stating, “Depot owners are severely affected by the rising cost of crude oil and exchange rates. Many depots are presently dried up or out of stock, and this is no gainsaying as it is evidently verifiable.”
Filling stations are bearing the brunt of this crisis, with owners finding it increasingly difficult to obtain funds to procure products for their retail outlets. Both independent and major marketers are reeling from the effects, leading to a surge in the number of stations shutting down daily and dealers teetering on the brink of bankruptcy.
Chief Chinedu Ukadike, the National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, had earlier warned of an impending petrol price hike in August. He explained, “Once there is a slack in the naira against the dollar, there is going to be an effect… So now that the dollar is hitting N910 to N940, and approaching N1,000, you should expect to buy PMS at the rate of N750/litre.”
The fuel price crisis in Nigeria appears to be a result of the perfect storm of volatile forex markets, rising dollar costs, and dwindling depot stocks, leaving many fearing the impact it will have on their daily lives.
