Anger, Frustration as Fuel Scarcity Lingers Nationwide
Despite the federal government’s assurance that the fuel crisis occasioned by the importation of adulterated fuel would soon be abated, many Nigerians are still gravely afflicted by the long queues, unofficial hike in pump price of PMS, extortion and other distressing conditions. Yinka Olatunbosun and Rebecca Ejifoma report
For about a month, Nigeria has been hit by fuel scarcity as a result of the importation of contaminated fuel which had to be taken off the market. The federal government discovered that the amount of methanol, a chemical additive, in the imported fuel from Belgium exceeded Nigeria’s specification of five percent.
At least 170.25million litres of petrol were affected. This has resulted in a shortage of petrol with queues reappearing in major cities including Abuja and Lagos.
Statistics
According to The Organization of the Petroleum Exporting Countries (OPEC), the continent’s largest oil producer and one of the world’s largest exporters has an estimated 1.7 billion barrels’ daily production capacity.
According to the Nigerian National Petroleum Corporation, the sole importer of the product to the country, the supply of Premium Motor Spirit (petrol) has increased to 70 million litres daily in the fourth quarter of last year.
As at December 2021, 2.25 billion litres of petrol were reportedly sold and distributed in Nigeria. This translates to 72.72 million litres per day. Before President Muhammadu Buhari’s administration, it was reported that the country’s petrol consumption ranges from 35 million to 40 million litres daily.
Sad Reality
The sad reality is that Nigeria relies heavily on importation of refined petroleum productions to create supply that match its fuel demands as the nation’s refineries are performing far below its optimal level. Sadly, energy prices have increased due to the rise in crude oil prices and the escalating Russia-Ukraine war.
This fuel scarcity is indeed bad timing because many small businesses are gathering momentum after COVID-19 loss. Despite the federal government’s promises that the fuel crisis would be over by last weekend, longer queues have been reported across several cities nationwide. In some filling stations in many Lagos suburbs, fights had been common among the crowd who often bought in jerry cans.
This explains why many filling stations do not dispense into jerry cans or other containers during the period of fuel scarcity. Ironically, many of these stations still sell to those who run the black market business.
Many small businesses depend on petrol for their power generators especially now that hours of power supply had reduced in many parts of the country. Hairdressers, fashion designers, electronics repair technicians, cold room operators, restaurants and hotels often depend on generators to appeal to customer’s wants and demands.
Also, two of the biggest ride-hailing services in Nigeria, Uber and Bolt have increased the cost of rides within Lagos and other major cities. Most working-class Nigerians who do not have cars or do not wish to drive rely heavily on these companies for their daily commuting.
For example, a ride from Victoria Island to Agege that would typically cost between N3500 and N4100 increased to N6,000 last Sunday. The effect of the fuel scarcity is biting as many businesses and individuals have expressed anger and frustration at the ‘kid glove treatment’ that the government has employed in tackling culprits behind the lingering fuel crisis.
Nigerians React
For Oludamola Adebowale, a PR professional and cultural activist, commuting in Lagos since the onset of the fuel scarcity and long queues at the filling stations has been more difficult than ever before.
“This fuel scarcity is crazy,’’ he began. “For us as car owners, we don’t just dread the scarcity- we also fear that we don’t buy the bad fuel so that you don’t knock your engine. I picked up my car at the mechanic’s yesterday and he was telling me that some cars had engine failure due to the bad fuel.
“And these are expensive cars like Ford, GMC that their engines might cost about N3 or N4m. Of course, there is a spike in the prices of things generally due to the fuel scarcity. Commuters are now at the mercy of keke, bikes and buses.
“A lot of people just need to get to one place or another. Let’s not even talk about the traffic. From Ogba to Ikeja GRA is annoyingly crazy. It definitely can take a toll on one’s mental health. It is just sad that this is happening and I hope the government can find a lasting solution to this. The economy is bad already so any addition to it just makes it worse. I don’t even want to imagine what the low income earners are going through. It is a really tough period for everybody,’’ he said.
Seun Olota, a musician and small business owner said that he relies on electricity and power generators to run his business and both have failed him lately.
“The petrol scarcity has affected us greatly. Businesses are impacted because we rely more on petrol so it means we have to ration what we have and sometimes, we may need to shut down earlier than necessary. We are losing money due to extortion and petrol attendants are lords at this time. It is an opportunity for them to make extra money, harass, abuse and disrespect people.
“We lose time while waiting in line to get petrol. And it affects everything. Almost everyone is losing his or her sanity. The fuel scarcity has caused an unnecessary aggression from commercial drivers towards their passengers. The effect is enormous and it shows the responsibility of the government at times like these: the way they react and what they say to citizens,’’ he revealed.
Hike in Fuel Price
Olota who was at the AP Filling station in Gbagada, Lagos reported that car owners had to pay N500 before the attendants would sell petrol. This story has been corroborated by many commercial drivers who ply Agege, Ikeja, Abule Egba, Ikorodu and other Lagos suburbs.
Some fuel stations on the Nnamdi Azikiwe Airport Road, Abuja were bombarded by queues last Thursday and Friday. The vehicles, mostly privately-owned, lined up in close proximity from the station right to the highway. As usual, just a stone’s throw from one of the fuel stations, you’d find a male black market seller, displaying two 15-litre kegs of fuel for sale at an outrageous price.
A businessman, Mr. Chimaobi Henry Ugwu, explained the situation to THISDAY while waiting in line to buy some fuel. “The hike in fuel price has been with us for a very long time. The major issue is the scarcity of fuel. I reside in Abuja and here, you’d drive through a filling station where they have more than 20 pumps but they will be selling with only one or two pumps. I think that’s the major cause of the very long queue we see all the time.”
Many bemoaned that sometimes, after waiting for about three or four hours on the queue, by the time it is their turn, the fuel attendants would lock up the filling stations, claiming they had run out of fuel. Sadly, just like himself, countless other private motorists would have to drive to other filling stations around town to start looking for fuel all over again until they could.
Another Abuja resident named Ugwu described the whole chaos as “an energy and time-sapping situation that is avoidable.
“For me, black market is not an option. I’ve heard stories about how people’s cars and generator sets got faulty because they were bought from black market.”
While some petrol stations in Abuja sell at N165 and N162 per litre, other filling stations currently sell at N300 per litre. And when people run out of steam waiting to buy at N165, they succumb to buying at N300 per litre.
Consequently, the masses bear the brunt of the extra charges, reflecting on foodstuff prices and transport fares.
“The best thing the government should do is total deregulation of the entire oil sector. When they achieve that, I think the problem we are always having with fuel scarcity will be resolved,” he added.
Another distraught resident in Abuja, Mr. Chi Dika, an entrepreneur, narrated his ordeal. “I remember buying a 10-litre fuel at N3,000 at one point. The last one I got, it was going as high as N10,000 for 10 litres. This has been my experience. But if you are able to queue at the registered filling stations you’ll get the market price of N165.”
He decried the recent fuel hike and its aftermath on his overall well-being. “This has affected me, my friends and my family members. When you get home, everyone is complaining bitterly. It’s not just about the financial implications. It also affects one’s emotional and mental stability. You are thinking of how to get fuel tomorrow and where.’’
The entrepreneur also hinted that diversifying the economy not just on paper but having a clear structural working feasibility plan is another strategy to halting the current burden. “One key thing to investment and to bringing up the economy and bringing foreign investment is light and security.
“We need to fix the light issue and insecurity. This will bring about low cost of production and investments. The NNPC could privatise the refinery where the government retains a certain percentage (20 to 30 percent) for regulatory purposes.”
Meanwhile, one Uber driver who preferred to be anonymous disclosed that he bought a litre at N300 on Wednesday in Abuja.
In Yenagoa, most filling stations sell above the official pump price. A resident, Esse Eseimokumor described the situation.
“The price of fuel is not stable. Some filling stations sell for one N185 per litre, some 230 per litre. But the NNPC and Total don’t have fuel as of this weekend. I have stored fuel since last week which I am using now,’’ she revealed.
Twitter Rants
The popular media personality known for hosting the reality show, Big Brother Naija, Ebuka Obi-Uchendu expressed his frustration at the agonising condition of living owing to the lingering fuel crises.
“Not a blink of power for a whole week, with fuel scarcity to boot. What a messy place,’’ he tweeted.
Another Nigerian, Akinola Dayo tweeted: “What is our government doing concerning this fuel scarcity? It is becoming more unbearable. No light, no fuel. Many of our old mamas who feed daily on the grinding machine cannot get little fuel for their machines. Can someone help us tell our leaders? People are suffering!”
A political analyst, Oluomo of Derby also posted his comment thus: “A country where the NNPC still imports petrol for everyone is not a serious country. To get out of this perennial fuel scarcity, Nigeria has to begin to produce and refine the petrol it consumes.’’
The agitation at the filling stations on Awolowo road, Ikoyi on Sunday evening gave a clue to how the rest of the week would run. Of course, the crisis has worsened along Lagos-Epe Expressway as Riken, a relationship coach remarked in a tweet.
“The fuel scarcity just got worse in Lagos. Three hours from Thomas Estate to Eleganza, road is full with people, no bus, just traffic everywhere. We really need to pray for Nigeria; at this point, I’m tired,’’ she tweeted.
A journalist, Ifeanyi Nwoko also observed that it is difficult for anyone to avoid extortion at this period.
“It’s difficult to be a good Nigerian. Queued for three hours at two petrol stations, fuel ran out on me twice. Noticed some people using the exit gate. I chose to be a true Nigerian, went to another station, did the ‘needful’ and I was done in 15 mins. I now have an ill-gotten full tank,’’ he revealed. He also revealed that the black market cost of 10 litres has risen to N8000.
Adverse Effect on Transportation
Some commuters are also worried that the new hike in public transport fares may not be reversed even when the fuel crisis ends. This has been the norm in many cities in Nigeria. For instance, at the beginning of the COVID-19 pandemic, commercial vehicles were forced to carry less than the usual capacity to enforce the physical distancing rules.
But after the lockdown, many commuters reported that the commercial drivers resumed full capacity loading of passengers without reducing the fares or returning to the former fares. Many commercial drivers, in their defense, claimed that the cost of vehicular maintenance had also risen due to the fall of the Naira against Dollars, Euros and Pounds. Hence, they find it difficult to restore the old fares on most routes.
Way Forward
Amidst the scarcity, the Nigerian National Petroleum Company Limited had released the details of how it distributed a total of 387.59 million litres of PMS within one week to bridge the petrol supply gap. The petrol distributed to Nigerians through retail filling stations from February 14 to 20, is just about an average daily distribution of 55.4 million litres.
With the distribution of 385.59 million litres in one week, the scarcity of petrol was arrested mildly, but the queues returned to Abuja as well as neighbouring states like Nasarawa and Niger.
The methanol-blended product, according to NNPC, was imported into the country by four oil marketers through four PMS cargoes under NNPC’s Direct Sale Direct Purchase arrangement.
The four companies that supplied the methanol-blended petrol, as contained in the NNPC’s statement, include MRS, which made the importation through a vessel named MT Bow Pioneer.
Others include Emadeb/Hyde/AY Maikifi/Brittania-U Consortium through a vessel identified as MT Tom Hilde; Oando through a vessel named MT Elka Apollon; and Duke Oil.
Emadeb, Oando, Brittania-U and MRS had since denied the allegation against them by the NNPC and are all facing the probe set up by the House of Representatives Committee on Petroleum Resources (Downstream),
In the midst of the crisis, NNPC promised that over 2.3 billion litres of PMS would be delivered before the end of February 2022 to resolve the crisis. In addition, the Major Oil Marketing Association of Nigeria (MOMAN), led by the Chairman, Olumide Adeosun, has directed its members to extend the operations of their jetties, depots and filling stations for 18 to 24 hours until the queues subside.
Meanwhile, the committee has continued with its investigation of the importation of adulterated petrol into Nigeria.
The committee had quizzed the Group Managing Director of the NNPC, Melee Kyari; and the Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed on the matter. It is expected that a thorough investigation into the adulterated fuel issue and strong legal action would bring some degree of sanity into the fuel situation in the country.
With over 40 years on the Turn Around Maintenance (TAM) of the four refineries in Nigeria, without results, the subject matter of fuel scarcity has become jaded though necessary. And every government intervention has only appeared to be a moonwalk.
More than ever before, Nigeria needs to pick up the pace in building a sustainable model for the oil and gas sector. Hopefully, the planned expansion of the current LNG production capacity to about 30 million tons per annum at Bonny with the ongoing N-LNG Train seven project as well as the declaration of 2021-2030 as the Decade of Gas towards a gas-powered economy will democratize the sector and lessen dependability on PMS.
Quotes
“Not a blink of power for a whole week, with fuel scarcity to boot. What a messy place…What is our government doing concerning this fuel scarcity? It is becoming more unbearable”
“This fuel scarcity is indeed bad timing because many small businesses are gathering momentum after COVID-19 loss. Despite the federal government’s promises that the fuel crisis would be over by last weekend, longer queues have been reported across several cities nationwide”
