The current fuel shortage has been blamed by the Independent Petroleum Marketers Association of Nigeria on a mix of uneven government policy in the petroleum sector and insufficient refining capacity.
Zarma Mustapha, the deputy president of IPMAN, made this announcement on Tuesday in response to the alarming news that Nigerians are facing a fuel shortage, as there have been several reports of lengthy lines at gas stations all throughout the nation.
Mustapha stated during his appearance on Channels TV’s Newsnight that the shortage is caused by a declining availability of petroleum products, especially Premium Motor Spirit, or petrol.
The official from IPMAN claims that the current fuel shortage has its origins in the late 1970s, when the Nigerian government founded IPMAN and other significant marketers in an effort to ease supply issues in the petroleum industry.
“Despite efforts to build infrastructure such as refineries and depots and expand refining capacity, the country has failed to keep pace with the growing demand for petroleum products, leading to recurrent shortages,” he stated. To satisfy the demands of Nigeria’s expanding population and economy, refining infrastructure requires ongoing investment.
“Policy decisions made by the government have also contributed significantly to the current state of fuel scarcity. The importation and distribution of petroleum products has been discouraged by private investors due to inconsistent price laws, specifically with relation to PMS. Although some products, such as kerosene and automotive petrol oil (AGO), are no longer controlled, PMS is still governed by the NNPCL, which further reduces supply chain efficiency and competitiveness.
Some independent marketers have attempted to import petroleum products, but their attempts have been unsuccessful due to unfavourable foreign exchange rates and expensive operating expenses. NNPCL is the main importer of PMS since private importation has been discouraged by the difference in exchange rates between the rates at which NNPC imports petroleum and the going market pricing. Thus, independent marketers such as IPMAN are relegated to rely on NNPC for their supply, impacting their bottom line.”
To guarantee a steady and dependable supply of petroleum products in the nation, the IPMAN official, however, advised the Federal Government to reevaluate its policies and boost investment in refining capacity.
Although market factors play a part in setting retail pricing, IPMAN underlines the need for a steady supply to keep up with demand from customers.
The current state of affairs emphasises the pressing need for a thorough evaluation of governmental regulations and more funding for refining capacity in order to guarantee a steady and dependable supply of petroleum products throughout Nigeria.
“Stakeholders look to the government for effective solutions to address the underlying issues plaguing the country’s petroleum sector as citizens endure the inconvenience of fuel scarcity once again,” he continued.