745 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  1,500mw Lost To Pipeline Bombings —NNPC

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

Fani-Kayode’s Wife Delivered A Set Of Triplets
Entertainment
10 views
Entertainment
10 views

Fani-Kayode’s Wife Delivered A Set Of Triplets

MT - May 25, 2018

The wife of former Aviation Minister, Femi Fani-Kayode, has delivered a set of triplets. Precious gave birth to three boys. She made the announcement on her Instagram…

APC Tells Security Agencies To Hold Okorocha Responsible For Breakdown Of Law And Order In Imo State
Buzz & Trends
11 views
Buzz & Trends
11 views

APC Tells Security Agencies To Hold Okorocha Responsible For Breakdown Of Law And Order In Imo State

MT - May 25, 2018

The All Progressives Congress, APC, in Imo State, has urged security agencies to hold the State Governor, Rochas Okorocha responsible for any breakdown of law and order…

Two Taraba APC Factions Lay Claim To Party Leadership
Politics
17 views
Politics
17 views

Two Taraba APC Factions Lay Claim To Party Leadership

MT - May 25, 2018

Barely a week after the Taraba State chapter of the All Progressive Congress elected two separate executives at different locations in Jalingo, both factions claim that their…

Adekunle Gold Drops New Album “About 30”, Says I Am Overwhelmed
Entertainment
14 views
Entertainment
14 views

Adekunle Gold Drops New Album “About 30”, Says I Am Overwhelmed

MT - May 25, 2018

Nigeria’s alternative sound singer, Adekunle Gold on Friday expressed how overwhelmed he was at the way his fans loved his new album, About 30. The singer took…

We’ll Expose How PDP Looted Treasury, Plunged Nigerians Into Poverty – Oshiomhole Threatens
Politics
14 views
Politics
14 views

We’ll Expose How PDP Looted Treasury, Plunged Nigerians Into Poverty – Oshiomhole Threatens

PH - May 25, 2018

Comrade Adams Oshiomhole has said that campaigns for 2019 general elections will be interesting because his party, the All Progressives Congress (APC), will reveal to Nigerians how…

Martin Luther King’s Daughter Rejects Claim That Her Father Would Be Proud Of Trump
Featured
22 views
Featured
22 views

Martin Luther King’s Daughter Rejects Claim That Her Father Would Be Proud Of Trump

MT - May 25, 2018

The daughter of Martin Luther King has turned down a claim that the major icon of the US civil rights movements would have been “proud of” Donald…

15 Injured As Blast Rock Indian Restaurant
Shocking
22 views
Shocking
22 views

15 Injured As Blast Rock Indian Restaurant

PH - May 25, 2018

Canadian police on Friday launched a hunt for two men who they believe is behind an explosion in an Indian restaurant near Toronto that injured 15 people.…

APC Restructuring Panel Recieve Praises For A Job Well Done
Best of Nigeria
21 views
Best of Nigeria
21 views

APC Restructuring Panel Recieve Praises For A Job Well Done

PH - May 25, 2018

Governor Seriake Dickson of Bayelsa State has praised Governor Nasir El-Rufai of All Peoples Congress panel on restructuring for doing a good job stressing that Nigeria was…

Insecurity: Zamfara Assembly Writes To Minister Over Incessant Killings
Buzz & Trends
21 views
Buzz & Trends
21 views

Insecurity: Zamfara Assembly Writes To Minister Over Incessant Killings

MT - May 25, 2018

Zamfara House of Assembly has directed its secretariat to write a letter to Minister of defence, Mansur Dan’ali, over incessant killings and security challenges in the state.…

Actor Jigan of ‘Sho-Mo-Age-Mi’ Fame, Writes About His ‘Yahoo’ Days and It’s Touching
Best of Nigeria
24 views
Best of Nigeria
24 views

Actor Jigan of ‘Sho-Mo-Age-Mi’ Fame, Writes About His ‘Yahoo’ Days and It’s Touching

MT - May 25, 2018

  According to Jigan, he has lived a flamboyant life but helping people has been his major thing as he can give someone his ‘last kobo’. The…

Victor Moses to Miss Super Eagles Match Against DR Congo as Mikel, Others Arrive in Camp
Sports
27 views
Sports
27 views

Victor Moses to Miss Super Eagles Match Against DR Congo as Mikel, Others Arrive in Camp

MT - May 25, 2018

The Super Eagles official twitter handle on Thursday, revealed that star player, Victor Moses will not be present when the Super Eagles take on DR Congo in…

Nigerian Author, Chimamanda Ngozi Adichie, Adresses Harvard’s Class of 2018
Best of Nigeria
28 views
Best of Nigeria
28 views

Nigerian Author, Chimamanda Ngozi Adichie, Adresses Harvard’s Class of 2018

PH - May 25, 2018

Writer and speaker Chimamanda Ngozi Adichie gave the class day address to the Harvard Class of 2018 on Wednesday. Chimamanda, characteristically, had a lot of jokes, but…

My Neighbour Beats Pregnant Wife Everyday, Man Raises Alarm On Twitter
Buzz & Trends
25 views
Buzz & Trends
25 views

My Neighbour Beats Pregnant Wife Everyday, Man Raises Alarm On Twitter

MT - May 25, 2018

An Abuja resident has raised the alarm about his neighbour, who beats his pregnant wife day and night. The man, who identified himself simply as Biba, raised…

How Former Employee Allegedly Dupe Folorunsho Alakija Foundation Of N3million
General
25 views
General
25 views

How Former Employee Allegedly Dupe Folorunsho Alakija Foundation Of N3million

MT - May 25, 2018

Mrs. Folorunso Alakija, one of the richest women in Africa, on Thursday revealed to an Ikeja High Court how she was duped by Vincent Ayewah, one of…

China Offers Scholarship To 47 UNIZIK Students
Geeky & Smart
23 views
Geeky & Smart
23 views

China Offers Scholarship To 47 UNIZIK Students

PH - May 25, 2018

The Chinese Embassy in Nigeria on Thursday offered scholarship to 47 students of Nnamdi Azikiwe University, a.k.a. UNIZIK, Awka, Anambra State. Professor Joseph Ahaneku, vice chancellor of…

READ: Singer Timaya Gives Advise to People Living Fake Lifestyles; “Wear the Clothes You Can Afford”
Best of Nigeria
25 views
Best of Nigeria
25 views

READ: Singer Timaya Gives Advise to People Living Fake Lifestyles; “Wear the Clothes You Can Afford”

MT - May 25, 2018

Popular Nigerian singer, Timaya has some words of advise for folks who hell bent on living a fake life just to ‘keep up with the Jones’s’ While people are…

Photos: Beautiful Family: Rapper, Olamide Steps Out With His Fiancee And Son
Best of Nigeria
31 views
Best of Nigeria
31 views

Photos: Beautiful Family: Rapper, Olamide Steps Out With His Fiancee And Son

MT - May 25, 2018

Indigenous Nigerian rapper, Olamide stepped out recently with his fiancee, Bukunmi and their son for what he called ‘School runs’. It should be recalled that the rapper proposed to…

Reply to Reno Omokri: How Mbaka Openly Criticised Buhari
Politics
34 views
Politics
34 views

Reply to Reno Omokri: How Mbaka Openly Criticised Buhari

MT - May 25, 2018

When I heard that Reno Omokri said Catholic priest, Rev Fr. Ejike Mbaka has remained mute despite all the evils perpetrated in Buhari's administration, it became clear…

Loading...