20 States Without Fuel As 10,000 Petrol Stations On A Edge Of Shutdown

20 States Without Fuel As 10,000 Petrol Stations On A Edge Of Shutdown

As fuel prices skyrocket in Nigeria, oil marketers face unprecedented challenges, with nearly 10,000 dealers on the brink of closure due to plummeting fuel consumption…… CONTINUE READING 

Recent Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) data reveals that daily fuel consumption dropped drastically, from 60 million liters in May 2023 to just 4.5 million liters in August 2024—a steep 92% decline. In August, only 16 out of Nigeria’s 36 states received fuel from the Nigerian National Petroleum Company Limited, deepening shortages.

This crisis follows President Bola Tinubu’s removal of the fuel subsidy in May 2023, which has since caused petrol prices to surge by 488%, reaching over N1,000 per liter by October 2024. This increase has strained the economy, driving up transport costs, accelerating inflation, and pushing many Nigerians to abandon personal vehicles in favor of public transportation.

Dr. Joseph Obele, National Public Relations Officer for the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), confirmed that the drastic reduction in fuel consumption has resulted in heavy financial losses for members, threatening the closure of around 10,000 retail outlets. He noted the cost of a truckload of petrol (PMS) has ballooned from N7 million to N47 million over the last 16 months, placing immense financial pressure on dealers.

Obele explained that PETROAN’s recent national meeting highlighted the urgent need for intervention, estimating that nearly 10,000 outlets could close within 45 days due to depleting trading capital. PETROAN, in a letter dated October 21, requested a N100 billion grant from the president to prevent these closures, which could impact about one million jobs.

Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria, echoed these concerns, noting that members have scaled down fuel purchases due to the rising cost of a truckload. Where members previously purchased ten trucks, many can now afford only eight, facing supply shortages as demand continues to drop.

The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has also raised alarms about the crisis, reporting job losses among truck drivers and fuel station employees. NUPENG Secretary-General, Mr. Afolabi Olawale, described the situation as dire, especially for the downstream sector, which has seen numerous petrol stations unable to afford even a single truckload of fuel, forcing closures and widespread job cuts.