Oil Marketers Reveal Exchange Rate, Three Other Factors Causing Fuel Scarcity

The National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Ukadike Chinedu, has blamed the exchange rate as one of the factors causing the scarcity of Premium Motor Spirit (PMS).

It was learnt that the high exchange rate increased the cost of petroleum products. It was also disclosed that the political season often scares suppliers from selling as payment is not guaranteed if a new administration comes in.

Chinedu explained that fuel scarcity was also experienced when the administration of Goodluck Jonathan was preparing to hand over. 

He said oil marketers who were supplying products went on strike over unpaid arrears at the end of Jonathan’s administration. 

“The exchange rate is affecting fuel imports, which is also why the cost of petroleum products are high. We use too much naira to chase the few dollars that are available. So the solution is for us to refine our crude here and get our depots working,” Chinedu said 

The oil marketer also stated: “we should note that most times when an administration is leaving, there is usually a scarcity of products. It happened during the time of former President Goodluck Jonathan. 

“This is because suppliers will be very weary of selling petroleum products so that their debts will not be carried over to the next administration. Successive governments have suffered this epileptic distribution of petroleum products during transition to a new government. 

“The government is winding up, and if you are a supplier you have to be careful in terms of supplying petroleum products. Remember that when Jonathan was there, marketers who were supplying products stopped and went on strike, demanding that they must be paid their arrears.” 

Also, he attributed fuel scarcity to the issue of subsidy and the importation of petroleum products. He said they are also contributing to the epileptic supply of PMS. 

Meanwhile, Chinedu disclosed that fuel scarcity will last till May or June 2023, “This may drag till the current administration leaves in May or till June this year.”