The ongoing petrol scarcity in Nigeria has taken a turn for the worse, as oil marketers reveal that the landing cost of petrol has skyrocketed to over ₦1,100 per liter due to the current exchange rate of $1,500 per dollar. This has made it increasingly difficult for them to import the product, exacerbating the shortage that is crippling businesses and the broader economy.
According to the Nigeria Employers Consultative Association (NECA), the country’s economy is under immense pressure due to foreign exchange market fluctuations, low crude oil production, and high monetary policy rates, which are stifling business activities.
Investigations have shown that stakeholders in the fuel supply chain are adopting strategies to maximize the distribution of the limited available supply. Major marketers and depot owners are purchasing petrol at around ₦560 per liter and selling it to independent marketers for between ₦670 and ₦680 per liter. These independent marketers, who bear the cost of transportation to various parts of the country, are selling petrol to consumers at prices ranging from ₦700 to ₦900 per liter, depending on the location.
The scarcity has led to long queues at the few operational filling stations, while many others remain closed due to a lack of product. The situation is causing widespread hardship and disrupting economic activities across the country.
