Nigerians are currently experiencing another round of fuel scarcity, and the situation which started last week is showing no signs of abating. In Lagos, most filling stations visited on Sunday were out of stock, while those selling had long queues of vehicles at their stations. The situation is the same in other cities around the country with only a handful of petrol stations selling fuel.

1) Scarcity of Dollar:
The scarcity of the dollar has been an issue for a while now, partly due to the exclusion of the Bureaux de Change operators from accessing Nigeria’s forex market. The CBN last month banned them from accessing its official window citing various infractions including round tripping and hoarding of dollars.

According to an interview conducted by Tribune, the marketers are finding it difficult to source for dollars to finance importation of petroleum products. The major issue is that the CBN cannot guarantee all the dollar demand to be used for importation by the marketers, so a lot of them rely on allocation from the Nigerian National Petroleum Corporation, which is the main importer of fuel.

“it is more expensive to source for dollars and finance imports with such dollars. “There is a price width which we must not exceed”. A marketer said.

2) NNPC’s Delay In Signing Crude Oil Swaps:
NNPC’s delay in signing the crude oil swap agreements is also a major cause of the fuel scarcity. According to a report in Reuters, NNPC have been trying to sign additional long-term contracts to cover well beyond the 210,000 bpd of oil that was exchanged in the past.

The report also showed that their are some 200,000 tonnes of petrol berthed offshore Nigeria, but this covers just over a week of consumption in Nigeria, while new March bookings have slowed to just over 100,000 tonnes, which is not close to the level required to service the country.

As the persistent volatility in the value of the Naira against the Dollar continues,the oil marketers would only try to bring in fuel if they have the swap contracts in hand, but otherwise would just wait and see how things unfold.

more on...http://nairametrics.com/these-are-the-factors-behind-current-fuel-scarcity-in-nigeria/

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I wonder why this happened in Accident of geography, while the country is oil rich

tsephanyah:
I wonder why this happened in Accident of geography, while the country is oil rich

oil rich country waiting for the white man to bring back their refined oil, smh

Nigeria olodo rabata, mtcheew

bish country

they should just fence the whole of Nigeria and start charging foreigners for trips into the zoo

We have never been serious as a country with the management of our oil resources.

Mod, please stick to FP.

kYjelly2:


oil rich country waiting for the white man to bring back their refined oil, smh

Nigeria olodo rabata, mtcheew

bish country

they should just fence the whole of Nigeria and start charging foreigners for trips into the zoo

lol, it will be high tourists destination

Shame, an oil rich nation consistently experiencing scarcity...sometimes I wonder what should make a citizen proud of Nigeria

Oil! Oil! Oil! Aint we tired?

Nigeria is seriously sick but trust me we are in a healing process.

spalletti:
Nigeria is seriously sick but trust me we are in a healing process.

Amen ooo

if we didn't have any oil in this country, what would have been our fate

kYjelly2:


oil rich country waiting for the white man to bring back their refined oil, smh

Nigeria olodo rabata, mtcheew

bish country

they should just fence the whole of Nigeria and start charging foreigners for trips into the zoo

NNPC and the major marketers have refused to import. The private depots that do import have to increase price due to differentials in sourcing for dollars, subsidy payments reconciliation. The petrol sold from such private depots comes to a range of 120 - 130.

Last2comment:
Only 2

U've Just Said My Mind

Which yeye factor(s)? The only factor is that PMB is a mis-fit... QED