291 Views

Wondering Why Petrol Queues Made Massive Return? Here’s Why

If you reside in Lagos or Abuja, you’ve probably seen your worst nightmare staring you right in the face all over again. The petrol queues are back with some vengeance like they never really left.

And maybe because they never really left.

The gas stations along the Oshodi-Apapa expressway have been shut to consumers. In Ikeja, only a few petrol stations are dispensing the product. Fat chance if you want to get petrol on the Island right now. For instance, on Awolowo way in Ikoyi, ‘Area Boys’ clutching kegs of adulterated petrol have resurfaced in their bedraggled outfits.

If you are wondering why petrol queues made a return, here's your answerplayPetrol queue along the Moboloja Bank Anthony Way, Ikeja Lagos

A respondent says the petrol station opposite the NNPC headquarters in Abuja has been engulfed with queues for as long as anyone can remember.

So, what exactly is going on?

There will be no prizes for guessing why the petrol queues made a return; just days after we thought they were gone for good.

The marketers are at it again.

If you’ve been listening carefully enough, the independent marketers have been warning about recurring and intermittent queues at gas stations for as long as there’s that differential between the landing cost of petrol and the pump price of the same product.

The landing cost of petrol was N133.28 per litre in 2016. The landing cost of petrol is now N171 per litre.

If you are wondering why petrol queues made a return, here's your answerplayPetrol scarcity grips Lagos again

In December 2017, marketers said they were importing petrol for N171/ liter. So, they wondered why anyone would reasonably expect them to sell at the government regulated price of N145 per liter.

During a legislative hearing in the first week of January, minister of state for petroleum resources, Emmanuel Ibe Kachikwu, all but agreed with the marketers.

According to Kachikwu; “The landing cost of the product is about N170 to N171. The price at which we sell today is N145. So, there’s a disparity between N171 and N145. What this means is that those individuals who are really there, not with an obligation like NNPC which has to meet national supply, but with a commercial bend, will not bring in products or they are going to sell at a loss.

“We need to free the marketers to do their business. To do their business, we need to address the pricing issue.

“One model, for example is, at the time we got the approval of N145, the exchange rate was N285 to $1. Today, it is N305. So, even at the minimum, there’s a gap.

“We are looking at whether, theoretically, you could respect the N145 per litre price and have a plural pricing system, so that NNPC and all its stations and affiliates sell at N145. And at the same time, the private marketers are able to bring in product at their own cost and sell”.

What is happening right now is that the price of crude in the international market has gone up to about $70 per barrel.

ALSO READ  Ryteprint: Online Printing Platform Launched In Nigeria

Most marketers won’t make a profit if they have to import petrol at N171 per liter and sell at N145 per liter. It’s the fastest way to run them out of business.

If you are wondering why petrol queues made a return, here's your answerplayNNPC GMD Baru tries to stop hoarders

Each time the price of crude goes up in the international market, expect petrol queues back home in Nigeria because Africa’s second largest crude oil producer can’t refine its own crude for local consumption.

Only the state run Nigerian National Petroleum Corporation (NNPC) is in all likelihood, catering to the demands of the local market right now. And that isn’t sustainable because NNPC doesn’t have the capacity to supply all the nooks and crannies of Nigeria with petrol even at the best of times. Hence the queues.

What can we do to stop these incessant queues?

Like Kachikwu hinted, our choices are rather grim as a nation and there are:

1. Allow private marketers buy and sell the product as the market dictates. That is called deregulation.

In a deregulated industry, private marketers of petrol who buy at N171 will sell at N175 in order to make a profit and stay in business. Asking them to sell at government pegged price of N145 when they are purchasing for much more will mean asking them to sell at a loss or asking them to stay out of the business; which is what most of them are doing right now in protest.

Osinbajo says govt’s burden is to defend territorial integrity, rightsplayVice President Yemi Osinbajo dispenses petrol during scarcity period in Lagos (Twitter/Presidency)

2. Nigeria has to begin to refine the crude oil it produces for local consumption. Until this happens, we’ll always be back here.

We have to get our refineries working again. Once we do, no one will talk about forex for petrol and how that is negatively affecting business.

3. There’s a high possibility that marketers are currently diverting the product across the borders because they’ll make better profit margins that way. Petrol sells for $1 (N306) per liter in Niger, Ghana, Cotonou. Marketers would rather take their petrol to those countries than sell the product back in Nigeria for less than a dollar (N145/liter).

Maybe it’s time to better police the borders and ensure no petrol meant for the Nigerian market is seeping out to Cotonou, Niger, Cameroon or Chad.

Until we stop the hoarders dead in their tracks, deregulate the market and refine the petrol we consume, the petrol queues will keep reappearing as soon as they disappear.

Get the best viral stories straight into your inbox!

Don't worry, we don't spam

Leave a Comment

Your email address will not be published.

Latest Posts

Wizkid Advises Davido Against Twitter Fight – “Forget Them OBO”
Entertainment
63 views
Entertainment
63 views

Wizkid Advises Davido Against Twitter Fight – “Forget Them OBO”

MT - February 23, 2018

The Wizkid– Davido friendship that shocked the entire country at the tail end of last year, has become a bond so strong that it recently passed a…

Lovely Birthday Photos Of Comedian Woli Arole
Entertainment
69 views
Entertainment
69 views

Lovely Birthday Photos Of Comedian Woli Arole

MT - February 23, 2018

  Woli Arole, real name Oluwatoyin Bayegun is a comedian that became popular through his skits on Instagram, fast forward years later and he has added actor,…

7 Fascinating Facts You Need To Know About Former Mr. Nigeria And Actor, Kenneth Okolie
Entertainment
56 views
Entertainment
56 views

7 Fascinating Facts You Need To Know About Former Mr. Nigeria And Actor, Kenneth Okolie

MT - February 23, 2018

  Kenneth Okolie came to limelight when he won the first Mr. Nigeria title in 2010. He followed this by moving to Nollywood industry and now he…

Meet The Proud Chelsea Fan Who Gave Birth To Twins During Champions League Match (Photos)
Inspiring
55 views
Inspiring
55 views

Meet The Proud Chelsea Fan Who Gave Birth To Twins During Champions League Match (Photos)

MT - February 23, 2018

A proud Nigerian mother identified as James Juliet has dedicated her new born twins to Chelsea Football Club. According to the new mother who was pregnant for…

‘Why Tithing Is Not Compulsory And Shouldn’t Be Compelled To Pay’ – Pastor Tunde Bakare
Religion
55 views
Religion
55 views

‘Why Tithing Is Not Compulsory And Shouldn’t Be Compelled To Pay’ – Pastor Tunde Bakare

MT - February 23, 2018

While speaking in an interview with BBC, Nigerian Prophetic-Apostolic pastor, and the founder of Latter Rain Assembly in Lagos, Pastor Tunde Bakare in on the controversial debate of "Tithing" and…

Ferrari Unveils Photos Of 488 Pista Ahead Of 2018 Geneva Motor Show [Photos]
Technology
52 views
Technology
52 views

Ferrari Unveils Photos Of 488 Pista Ahead Of 2018 Geneva Motor Show [Photos]

MT - February 23, 2018

  The rightful successor to Ferrari’s V8 special series, the ‘488 Pista,’ is to be unveiled at the 2018 Geneva motor show. Based on the translation of…

Unbelievable: Meet The Nigerian Author Of 5 Books Who Reportedly Sells ‘Zobo Drink’ On The Streets (Photos)
Inspiring
71 views
Inspiring
71 views

Unbelievable: Meet The Nigerian Author Of 5 Books Who Reportedly Sells ‘Zobo Drink’ On The Streets (Photos)

MT - February 23, 2018

If the report by Premium Times is anything to go by, then one could say it's really a mixed reactions scenario for this young man. The report…

Meet The Top 5 Richest People In Nigeria
Profiles
59 views
Profiles
59 views

Meet The Top 5 Richest People In Nigeria

PH - February 23, 2018

Nigeria is home to numerous well off people. Amazingly, the wealthiest man in Africa is a Nigerian while the second wealthiest African lady is additionally a Nigerian.…

In Photos: Moment Olu Of Warri Kingdom, His Majesty Ogiame Ikenwole Visited Buhari In Aso Villa
Art, History and Culture
57 views
Art, History and Culture
57 views

In Photos: Moment Olu Of Warri Kingdom, His Majesty Ogiame Ikenwole Visited Buhari In Aso Villa

MT - February 23, 2018

The Olu of Warri Kingdom, His Majesty Ogiame Ikenwole leading members of his cabinet to the Presidential Villa for a meeting with President Muhammadu on Friday. (c)…

Highlights On The Most Richest Musicians In Nigeria…. You’ll Be Surprised!
Entertainment
62 views
Entertainment
62 views

Highlights On The Most Richest Musicians In Nigeria…. You’ll Be Surprised!

PH - February 23, 2018

They are one of the very important people in the country. the money circulating in the Nigerian music industry is a very enviable sum. Asides the showbiz-life,…

10 Ways To Fall In Love With Your Partner All Over Again
Romance and Love
54 views
Romance and Love
54 views

10 Ways To Fall In Love With Your Partner All Over Again

PH - February 23, 2018

Even if you and your SO are still very much in love, there are always ways to make that flame burn even stronger. Certain things just remind…

How Federal Government Spent N65 Million on Website
Politics
52 views
Politics
52 views

How Federal Government Spent N65 Million on Website

PH - February 23, 2018

The Office of the Secretary of the Government of the Federation, OSGF, has explained how N65 million was spent on a website. A review of the 2017…

Little Boy Who Photobombed A Viral Wedding Photo Lands Endorsement Deal
Entertainment
74 views
Entertainment
74 views

Little Boy Who Photobombed A Viral Wedding Photo Lands Endorsement Deal

PH - February 23, 2018

Oluwatobiloba Michael Falana, the cute little boy that photobombed the viral wedding photo last year is now a brand ambassador for Qtaby events, a talent and event…

Tips On How You Can Reduce That Pesky Belly Fat
Food and Health
62 views
Food and Health
62 views

Tips On How You Can Reduce That Pesky Belly Fat

PH - February 23, 2018

Getting rid of belly fat is not only for making your clothes fitted and smart, it is much more than that. Fat in the belly area is…

How Woman Allegedly Forged Police AIG’s Letter To Get 33,000 Litres Of Fuel
Shocking
52 views
Shocking
52 views

How Woman Allegedly Forged Police AIG’s Letter To Get 33,000 Litres Of Fuel

MT - February 23, 2018

 a 47-year-old woman identified as Jero Nwoze appeared before an Igbosere Magistrate’s Court in Lagos, yesterday, over alleged forgery of a letter purportedly written by an Assistant Inspector General…

LIST: Here Are 6 Yummy Yoruba Delicacies That Are Worth Trying (With Picture)
Best of Nigeria
60 views
Best of Nigeria
60 views

LIST: Here Are 6 Yummy Yoruba Delicacies That Are Worth Trying (With Picture)

MT - February 23, 2018

The best way to most people’s heart is via good food and entertainment. This is one thing the Yoruba tribe are very good at doing. Yorubas have…

Viral Photos: Pregnant Woman Takes Her Maternity Shoot To Another Level With Hubby
Romance and Love
73 views
Romance and Love
73 views

Viral Photos: Pregnant Woman Takes Her Maternity Shoot To Another Level With Hubby

MT - February 23, 2018

Check out these artistic maternity photos that has got people talking for obvious reasons. the pictures have since gone viral since their release on social media. In…

Fela Durotoye Speaks On 2019 Election
Politics
83 views
Politics
83 views

Fela Durotoye Speaks On 2019 Election

PH - February 22, 2018

Fela Durotoye, a consulting guru, leadership coach and public speaker, says he will be running for president, come 2019. The 46-year-old declared his intentions on Thursday, adding…

Loading...