Many fuel stations in Aba, Abia State’s, have been shut down due to hike in the cost of the purchase of fuel.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) points fingers at the Nigerian National Petroleum Corporation (NNPC) for failing to supply products directly to them.
The situation has led to significant price hikes, with some fuel stations selling petrol at as much as N1300 to N1350 per litre, which is above the expected prices.
Report has it that these stations, hassle to get fuel from third-party suppliers at exorbitant rates due to the unavailability of direct supplies from the NNPC.
Speaking on the issue, the Executive Chairman of IPMAN Aba Branch, Mazi Oliver Okolo, expressed concern over NNPC’s failure to supply petroleum products to their members for the past three months.
“The NNPC has not been selling products to us directly. Instead, they sell to middlemen who then offload the products to us at inflated prices,” he explained.
He explained how the lack of direct supply is disadvantageous to smaller fuel stations, forcing them to increase prices just to stay afloat.
“Our members now lift petrol at high costs and sell to motorists and other users at inflated prices,” he added.
He called on the federal government to take action by ensuring that the NNPC refineries are operational, stating, “If the refineries were working, Nigerians would be able to purchase petrol at more affordable prices.”
With fuel stations shuttering and prices skyrocketing, residents of Aba are facing increased hardship, with many calling for immediate government intervention to address the root causes of the crisis.
Link to rising NNPCL debt
The fuel crisis in Nigeria has deepened due to the Nigerian National Petroleum Company Limited (NNPCL) grappling with over $6 billion in debt.
This has hindered fuel supply from global suppliers, worsening the already fragile situation.
What has the government done?
Despite a recent $300 million cash injection from the Federal Government, the fuel scarcity has persisted, with prices continuing to rise across the country.
About a week ago, Hammed Fashola, the National Vice Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), was reported to have criticized the disparity in fuel prices.
He expressed concern over the fact that independent marketers are forced to sell petrol at higher prices due to unfavourable sourcing costs, while major marketers sell at lower rates.
Fashola emphasized the need for a uniform pricing system or a full return to the subsidy regime, as the current situation is “killing” independent marketers’ businesses.
