Amid a steep decline in fuel consumption due to surging fuel prices, oil marketers in Nigeria are facing unprecedented challenges, with around 10,000 dealers on the brink of shutting down.
Recent data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reveals that fuel consumption fell sharply to 4.5 million litres per day in August 2024, down from 60 million litres per day in May 2023—a staggering 92 percent drop.
Additionally, only 16 out of the nation’s 36 states received fuel from the Nigerian National Petroleum Company Limited in August, exacerbating shortages across the country. ...CONTINUE READING
The crisis follows the removal of the fuel subsidy by President Bola Tinubu in May 2023, which has led to a 488 percent surge in petrol prices, skyrocketing from N175 to over N1,000 by October 2024.
The resulting economic strain has driven up transport costs, intensified inflation, and forced many Nigerians to abandon personal vehicles for public transportation.
Dr. Joseph Obele, National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), confirmed that the steep decline in fuel consumption has led to substantial financial losses for their members, placing approximately 10,000 retail outlets at risk of closure.
Obele highlighted the financial pressure, noting that the cost of a truckload of petrol (PMS) has jumped from N7 million to N47 million in the past 16 months.
“Just three days ago, we held a national meeting at PETROAN, where we estimated that nearly 10,000 members might cease operations within 45 days due to depleted trading capital,” Obele told Sunday PUNCH.
In a letter dated October 21, PETROAN requested a N100 billion grant from the president to prevent these closures, which would impact the livelihoods of around one million employees.
Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria, echoed these concerns, acknowledging that members have cut down fuel purchases due to the escalating cost of a truckload.
“Where some members once purchased 10 trucks, they can now afford only eight. We’re not receiving adequate quantities,” Maigandi explained, underscoring the supply difficulties.
The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) also expressed concern over the crisis, noting job losses among truck drivers and fuel station employees as operations decline.
NUPENG Secretary-General, Mr. Afolabi Olawale, described the dire situation: “Many petrol stations can’t afford even a single truckload of fuel, leading to closures and job losses for truck drivers and station workers.”
Olawale acknowledged the widespread impact across sectors but noted the downstream sector—encompassing truck drivers, station employees, and depot representatives—has been hit hardest. He was unable to provide specific job loss figures, describing the situation as “evolving.”
Obele additionally pointed out that the escalating fuel prices have curbed cross-border fuel racketeering, a longstanding issue in the region.
