Mr Rabiu Bello, Senior Independent Non-Executive Director at Seplat Energy Plc, asserts that resolving Nigeria’s current fuel scarcity issues hinges on ensuring sustainable supply of petrol nationwide.
In an interview with the News Agency of Nigeria (NAN) on Wednesday in Lagos, Bello addressed issues around the ongoing fuel shortage and rising pump prices of petrol.
He identified the root cause of the scarcity to include insufficient supply from the Nigerian National Petroleum Company Limited (NNPCL), which is the sole supplier.
Bello noted that other fuels like diesel, kerosene, and aviation fuel were not facing similar distribution issues due to the absence of a monopoly supplier and regulated pricing for these products.
Regarding the increase in pump prices, Bello expressed serious concerns about the lack of transparency and accountability in the market.
He criticised the government’s failure to implement its deregulation policy effectively.
He stated: “The rise in PMS pump prices due to the government’s inability to enforce its deregulation policy is a significant setback in our pursuit of a sustainable and liberalised downstream petroleum sector in Nigeria.
“This move only solidifies NNPCL’s monopoly as the sole importer of PMS”.
On the potential impact of the Dangote Refinery’s petrol production, Bello remarked that the refinery’s products were expected to be cheaper than imported ones, particularly if the government supplies crude oil to the refinery at a fee.
He added: “With the refinery’s capacity exceeding Nigeria’s local consumption, petroleum products from domestic crude can be allocated to Nigerian marketing companies at competitive, cost-reflective prices at the refinery gate.
“The efficiency of these companies in delivering products to consumers will influence pump prices”.
According to Bello, the Dangote Refinery’s entry into the market will improve supply and alleviate fuel queues.
A NAN correspondent reports that many motorists in Lagos were stranded as numerous NNPC stations and other filling stations were closed amid uncertainty over pump prices.
At NNPCL stations on Ikorodu Road, Gbagada, Ikeja, Bariga, and Ogba, prices had surged from N585 per litre to between N855 and N1,000 per litre.
Meanwhile, stations operated by Mobil, NIPCO, TotalEnergies, MRS Petrocam, and Northwest at various locations were selling petrol between N950 and N1,000 per litre.
Motorists in Lagos expressed frustration over the price hike.
Mr Felix Douglas, a commercial driver, criticised the increase, stating that it did not align with current economic conditions and would be of challenge to many civil servants who faced stagnated wages.
He noted, “The price of petrol, which used to be around N585 per litre, has now jumped to about N1,000 per litre.
” Such a drastic increase negatively impacts Nigerians”.
Mr Ibrahim Edu, a civil servant, condemned the recent price increase as both abnormal and insensitive.
He said: “Nigerians are already suffering from high costs of goods and services, and this new petrol price hike only adds to their burden.
” The government has failed to adjust salaries but continues to raise pump prices without sufficient notice, worsening the plight of ordinary citizens,” he said.(NAN)
