Petrol Scarcity, Price Differential To Persist

The reason, it said, is the distorted petrol supply flow process. These distortions, according to the report, include the NNPC Ltd monopoly and resource constraints, logistical challenges of bad roads and aged pipelines, preferential FX and petrol subsidies to NNPC Ltd, and the politicizing of PIA implementation.

Said Proshare: “With domestic refining from Dangote and Port Harcourt refineries expected in Q2 2023, analysts suggested a phased deregulation of domestic retail premium motor spirit (PMS) pricing. A one-shot subsidy removal may be too severe but a gradual rollback would soften the impact. Analysts share the opinion of the Presidential Candidate of the All-Progressives Congress, Bola Tinubu, who insisted on removing petrol subsidies regardless of any opposition if elected President.”

It would be recalled that reports had it that Nigerian regulators, oil marketers agreed to end prolonged fuel scarcity after SSS’ intervention. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other relevant organisations in the oil sector agreed to end the lingering fuel scarcity across the country in 48 hours but we are yet this happening.

Speaking to journalists in Abuja after a closed-door meeting with the State Security Service (SSS), the operators said depots would work seamlessly for 24 hours daily to end petroleum queues across the country.

Nigeria’s lingering fuel scarcity became worse in recent weeks as several filling stations failed to sell petroleum products. Operators of filling stations where petroleum products were available sold at prices higher than the government’s pump price.