Nigeria faces severe fuel shortages amidst rising prices and long queues

Nigeria is currently grappling with severe fuel shortages and significant price hikes that have resulted in extensive gridlock across the nation. The Nigerian National Petroleum Corporation (NNPC), which oversees the importation and distribution of fuel, has attributed these issues to its mounting debts and the escalating prices of fuel on the global market.

The BBC reported that as a consequence, many Nigerians find themselves stranded at petrol stations, where long queues have become a common sight. In urban areas such as Lagos, public transport options are scarce, forcing commuters to walk considerable distances as transport costs have surged.

Recently, the NNPC announced a price increase for petrol from 617 naira ($0.40, £0.30) to 897 naira per litre, impacting fuel costs nationwide. Although the NNPC maintains the lowest prices, private sellers have also increased their charges, with prices soaring up to 1,200 naira per litre in certain states, such as Oyo, Kano, and Kaduna. Many petrol stations have either shut down or are in the process of adjusting their tariffs, while those in the capital, Abuja, remain operational but are inundated with desperate customers, some of whom have resorted to sleeping in their vehicles overnight in an effort to secure fuel.

A motorcycle operator in Kano, a central trading hub, expressed dissatisfaction with the situation, noting that most fuel stations were closed due to adjustments for the new price. He reported being able to purchase fuel at 950 naira at one station, while others had already increased prices to 1,200 naira per litre. Additionally, the rise of black-market vendors, who acquire fuel from traditional petrol stations and offer it at inflated rates, has resulted in rampant price gouging in the region.

“Most of the fuel stations here in Kano are closed because they want to adjust their pumps to the new price. I was able to get fuel at 950 naira at a particular station, but other places have already started selling at 1,200 per litre,” Aminu Danyaro told BBC.

The Nigeria Labour Congress (NLC), the country’s principal trade union body, has voiced feelings of betrayal, emphasising that their acceptance of a newly agreed-upon minimum wage of 70,000 naira ($44, £34) was predicated on an understanding that fuel prices would remain stable.

For the NLC, “We feel ‘betrayed’… our acceptance of the new minimum monthly wage of 70,000 naira was because there was an agreement with the government that petrol price would not be increased.”

The situation worsened when President Bola Tinubu enacted a controversial policy on his first day in office last year, abolishing the fuel subsidy that had previously kept prices manageable. This decision has contributed to the most severe economic crisis the country has faced in decades, sparking nationwide protests labelled as the “10 days of rage” in response to increasing living costs.

Amidst this turmoil, many Nigerians are looking to the newly established Dangote Petroleum Refinery, built by Aliko Dangote, one of Africa’s wealthiest individuals, as a beacon of hope. The refinery has recently commenced petrol production, a notable achievement for a country that, despite being Africa’s largest crude oil producer, has depended on imports for its refined fuel. However, uncertainties remain regarding how swiftly fuel availability can improve or if prices will decrease in the near future.