There are indications that fuel scarcity might rock Nigeria in the coming days due to the lack of products caused by Foreign Exchange (Forex) rate volatility.
According to oil marketers, petroleum product depots across the country are currently deserted.
This is as the landing cost of petrol, also known as Premium Motor Spirit (PMS), skyrocketed to N720/litre.
The increase in cost, they explained, has made it extremely challenging for filling stations to stay operational, leading to a significant number of them shutting down daily.
In August 2023, the landing cost of PMS in Nigeria stood at N651/litre.
However, it has now surged to N720/litre, exacerbating the challenges faced by petroleum product dealers.
The National President of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), Benneth Korie disclosed that numerous depots are currently dried up or out of stock.
Korie called on the government and stakeholders to take immediate action to address the issue at hand.
He said:
“Depot owners are so terribly affected by the increasing cost of crude oil and exchange rate, to the extent that many depots are practically deserted as their owners are unable to secure bank loans to fund their business due to high-interest rates.
“Banks are not willing to guarantee funds release to stakeholders as a result of the difficulty, instability and galloping rates of foreign exchange and high cost of the dollar. Many depots are presently dried up or out of stock, and this is no gainsaying as it is evidently verifiable.
“Worst hit are filling stations whose owners find it extremely difficult to secure funds to procure products for their retail outlets. Both the independent and major marketers are so terribly affected.
“As of today, filling stations are shutting down in great numbers on a daily basis and dealers are going out of business, with many more on the verge of bankruptcy because of their inability to secure funds to facilitate orders for their stations.”
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