Nigeria’s fuel shortages persist as prices of food, transportation severely impacted

Nigeria’s fuel shortages persisted in major cities on Tuesday, causing an immediate increase in prices of goods and transportation and adding to the country’s cost-of-living crisis.

Prices in some retail outlets in Lagos and Abuja jumped above 850 naira, while those outside major cities, such as Kwara, Kano, and Niger States, soared above 1000 naira.

Despite the increase in prices, the government-owned oil firm, NNPC Ltd., which imports the products, sells at an average price of 617 naira per liter of petrol.

The NNPC Ltd. explained that the shortages were caused by logistical challenges, assuring customers that it has enough products to sell to petroleum product marketers.

Petrol is commonly used in cars and to power generators for households and small companies, as Nigeria continues to struggle with electricity chaos.

The present shortfall is putting a strain on the economy, which is already dealing with the highest inflation rate in 28 years.
At the Mandate Market in Ilorin, prices of pepper rose to their highest rates in several weeks with a basket of tomatoes, previously sold for 23,000 naira, hitting 60,000 naira on Tuesday. Other food items have been climbing in prices, leaving many buyers ftrustrated.

Recall that the Bola Tinubu-led government abolished subsidies on petrol last year and enabled private enterprises to import, but foreign currency shortages and a restriction on petrol prices have left NNPC as the sole importer.

An NNPC representative stated that some establishments were taking advantage of the current situation to maximize profit.

Experts say the fuel scarcity would greatly impact the price of basic food items across the country, adding to frustration after the government raised electricity tariffs for some consumers.