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HomeBusiness NewsWhy There Is Fuel Shortage In The Country - Oil Marketers Reveals

Why There Is Fuel Shortage In The Country – Oil Marketers Reveals

The present 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 fuel shortage, as there have been several reports of lengthy lines at filling stations all throughout the nation.

Mustapha stated during an appearance on Channels TV’s Newsnight that the shortage is caused by a declining availability of petroleum products, especially Premium Motor Spirit.

He claims that the present 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.

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He said, “Despite efforts to expand refining capacity and build infrastructure such as depots and refineries, the country has failed to keep pace with the growing demand for petroleum products, leading to recurrent shortages. There is a need for continuous investment in refining infrastructure to meet the needs of Nigeria’s burgeoning population and economy.

“Government policies have also played a significant role in exacerbating the fuel scarcity situation. Inconsistencies in pricing regulations, particularly regarding PMS, have deterred private investors from participating in the importation and distribution of petroleum products. While certain products like Automotive Gas Oil (AGO) and kerosene have been deregulated, PMS remains under the control of the NNPCL, further limiting competition and supply chain efficiency.

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“Despite efforts by some independent marketers to import petroleum products, the unfavourable foreign exchange rates and high operational costs have rendered such ventures unprofitable. The disparity between the exchange rates at which NNPC imports fuel and the prevailing market rates has discouraged private importation, leaving NNPCL as the primary importer of PMS. As a result, independent marketers like IPMAN are left to rely on NNPC for their supply, impacting their bottom line.”

The IPMAN official, however, urged the Federal Government to review its policies and increase investment in refining capacity to ensure a stable and reliable supply of petroleum products in the country.

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“While IPMAN acknowledges the role of market dynamics in determining retail prices, the association emphasises the importance of consistent supply to meet consumer demand.

“The current situation highlights the urgent need for a comprehensive review of government policies and increased investment in refining capacity to ensure a stable and reliable supply of petroleum products across Nigeria.

“As citizens endure the inconvenience of fuel scarcity once again, stakeholders look to the government for effective solutions to address the underlying issues plaguing the country’s petroleum sector,” he added. [CONTINUE READING HERE]

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