Nigeria fuel shortages worsen, driving up prices

Fuel shortages worsen in Nigeria, driving up prices

Gasoline shortages persist in 's major cities, leading to a sharp increase in prices and exacerbating the country's cost-of-living crisis. Retail prices in Lagos and Abuja surged above 850 naira, while prices in areas outside major cities, such as Kano, soared above 1000 naira, despite the government-owned oil firm, NNPC Ltd, importing products at an average price of 617 naira.

President 's government removed subsidies last year, allowing private firms to import gasoline. However, foreign currency shortages and price caps have left NNPC as the sole importer. An NNPC spokesperson noted that some retailers were exploiting the situation to maximize profits.

The scarcity of gasoline, crucial for transportation and powering generators, is further straining an economy already grappling with its highest in 28 years. Many commuters faced difficulties as buses were stuck in long queues at retail stations.

Analysts warn that persistent shortages could lead to sharp increases in the prices of basic food items, adding to frustrations after recent electricity tariff hikes.

The NNPC attributes the shortages to logistical challenges but assures customers of sufficient reserves, with over 1.5 billion litres of petrol, enough for at least 30 days. However, the NNPC is burdened by debt and struggles to produce sufficient crude for its refineries.

  • Reporting by Isaac Anyaogu, Editing by Louise Heavens

Leave a Reply

Your email address will not be published.