Fuel queues persist in Lagos, others despite NNPC assurances – Newstrends
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Fuel queues persist in Lagos, others despite NNPC assurances

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Fuel queues persist in Lagos, others despite NNPC assurances

Emmanuel Addeh in Abuja, Peter Uzoho in Lagos, Adibe Emenyonu in Benin City, John Shiklam in Kaduna, Ahmad Sorondinki in Kano and Blessing Ibunge in Port Harcourt

The long petrol queues in Abuja appeared to have shortened in several parts of the Federal Capital Territory (FCT) at the weekend, although a number of  filling stations were still shut, while some continued to sell for as much as between N700 and N800.

But in the outskirts of town, some stations were still selling the product for as high as N950, since the product had yet to fully circulate.
There had been biting scarcity of Premium Motor Spirit (PMS) also known as petrol in Abuja for over a month, which later extended to more states of the federation, with the product selling for over N1,000 in some places before now.
Although in Abuja, the long stretches which had disrupted commercial and social activities were reducing, however, neighbouring states like Kaduna, Kano, Niger, Nasarawa, had yet to experience similar relief.

The Conoil and Total filling stations opposite the NNPC headquarters in Abuja had shorter queues compared to earlier in the week when THISDAY visited.
At the NNPC mega station in Zone 1 and the one opposite GSM village, the long lines which dominated most of the roads around the area, had begun to shrink. The NNPC was still selling for its subsidised rate of N617 per litre as of yesterday evening.

Last week, the Nigerian National Petroleum Company Limited (NNPC) said that the shortages were caused by ‘distribution’ challenges, even though it failed to specifically tell Nigerians what caused the current scarcity which had lingered in Abuja and environs for over four weeks.
In several parts of Abuja, a 10-litre container of the product which hitherto sold for as high as N12,000 at roadside black markets, had fallen to N10,000. Many private filling station owners also sold for circa N700 per litre within town.

Earlier, NNPC’s Vice President (Downstream), Dapo Segun, apologised to Nigerians over the queues blaming weather conditions for the insufficient distribution of fuel across the country.
“A number of the causes are outside of our control but we’ll do our best to manage. We do not like to make excuses,”  Segun stated.
In Lagos, marketers of petroleum products and motorists expressed their frustration and anger over the continuous petrol scarcity in the nation’s commercial nerve centre and other parts of the country despite promises by the NNPC which is the sole importer and supplier of the product in the country.

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Since last weekend, residents of the state have been going through harrowing experiences just to buy fuel to power their vehicles, tricycles, motorcycles and generators.

Despite the national oil company’s assurances, nothing positive has happened as most of the filling stations in Lagos still didn’t have the product as of the time of filing in this report.
The few filling stations that had petrol in the city had their premises crowded with vehicles, tricycles, motorcycles, jerrycan-bearing buyers as well as those that came with fuel tanks of their generators and motorcycles.
At AP filling Station on Awolowo Road Ikoyi, THISDAY observed that buyers crowded the facility in their desperation to buy, as the outlet was selling relatively cheaper at N720 per litre.

Mobil filling station on the same road was also selling but with queues while the nearby Total filling station was not selling and was completely deserted because it had no product.
At NNPC filling station at Obalende, only buyers with jerrycans, generators and motorcycle tanks were being sold to. Although, the station was dispensing at N568 per litre but a buyer had to pay N1,500 first before being attended to.
The Northwest mega filling station at Gbagada was selling but with a massive queue at the premises that stretched several kilometres along the busy expressway. Similarly, Total filling station by Anthony, Gbagada, was also selling but in a skeletal manner.

However, there was no fuel at Conoil filling station at National Bus-stop Ikeja, and at NIPCO filing station at Mangoro axis as the two outlets were deserted.
Also, on the Mangoro axis, NNPC was selling with shorter  queue, while another Conoil filling station nearby had no fuel when THISDAY visited.
In the same vein, NNPC filling at Akowonjo Roundabout had no fuel as of yesterday, but Nepal filling station very close to it was crammed with motorists and jerrycan-bearing buyers.

Again, the two NNPC filling stations on Egbeda-Idimu Road were submerged with queues, just as Eterna, Petrocam, Omalad, Alpha, Al-Moruf, IIG, NNPC, AP, and Mobil filling stations all located along the Isheri-Igando-LASU Road had no fuel.
When contacted to get their supply updates, a top official at the Major Energies Marketers Association of Nigeria (MEMAN), formerly MOMAN, who pleaded not to be mentioned, told THISDAY that he was tired of talking about the same issue every time without any improvement.
Admitting that the endless fuel supply challenge had got him demoralised like every other Nigerian, the source said he would only talk when he was in a good mood.

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Former Chairman of MOMAN and Managing Director of 11Plc Limited, owners of Mobil filling stations, Mr. Tunji Oyebanji, told THISDAY that NNPC was still giving them the usual quantity that was not enough for the market.
He said the queue was not likely to disappear unless product supply to marketers improved.
He said: “No much improvement yet. They are still giving us what they have been giving to us, which is not enough. So the queue is not likely to disappear since the supply from the source is not enough. So people need to shun panic buying and have the confidence that the supply will improve.

“As long as people keep on with their panic buying where they will go to the station and wait to fill up their tanks, the queue will continue. So like I said, let people have the feeling that whenever they come to the station, they can buy the quantity that will take them for that day. With that, the queue will reduce.
“We are hoping and praying for the supply to improve so that every filling station will have the product to sell, and this problem will end”.
Some of the motorists, who spoke to THISDAY, said they had lost confidence in the government, adding that all they get from their leaders was suffering and punishment.

A motorist at the Northwest filling station at Gbagada, Mr Ayodeji Amosun, said he had been at the facility for over five hours but was yet to get fuel.
“I came here to buy fuel since five hours. I have not gotten. I don’t even know if I can still get fuel today. All my business appointments have been cancelled today because I can’t drive to anywhere from here without fuel. My tank is empty. Is this how to be wicked to the people?
“Every time we go and vote but things remain the same. All we get from our government is promise upon promise without fulfilment. All we get from them is suffering and punishment.”

Efforts to get supply updates from NNPC proved abortive as the company’s Chief Corporate Communications Officer, Mr. Olufemi Soneye did not respond to THISDAY’s text message and phone call as of the time of filing in this report.
However, Soneye had last Sunday, blamed the current product shortage on evacuation challenge, promising that NNPC would have that resolved by midweek.
He had stated, “We are currently experiencing some evacuation challenges in Lagos, but they should be resolved by midweek”.
The Rivers state chapter of the Independent Petroleum Marketers Association Of Nigeria (IPMAN) assured that in few weeks, the state will witness consistent supply of fuel in all the filling stations in the state.

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The state chairman of IPMAN, Tekena Ikpaki who spoke with THISDAY, was reacting to the public outcry over the increase in fuel price.
Ikpaki disclosed that there was an ongoing intervention in loading, and expressed the hope that soonest the issue of high fuel price will be resolved to douse the ongoing tension in the system.
“Whatever they see in the market now is just a function of short supply. Right now supplies are ongoing, hopefully tension will also die down because at this moment loading is ongoing.

“When there is short supply, price of fuel will be high and it will cause unpleasant situation in the system. And there is intervention loading from NNPC. As the loading continues there will be consistency of fuel and it will douse the pressure,’’ Ikpaki pointed out.
Meanwhile, THISDAY observed that fuel was sold between N800 and N950 in filling stations in Port Harcourt. However, there was no scarcity in the state.
It was also discovered that there was fuel in almost all the filling stations in Port Harcourt although rates were high, apart from the NNPC which still sold at N591 and N600 per litre.

An energy analyst, Mkpoikana Udoma, said the high price of fuel had badly affected the economy and had led to hardship experienced by Nigerians across the country.
Udoma said: “In fact, since our President on May 29, 2023 announced that subsidy is gone, automatically the price increased by more than 300 per cent which inadvertently affected the price of every commodities in the market.

“So, the high price of fuel has affected every aspect of the economy and further plunging the masses into poverty and hardship”.
In Edo, petrol scarcity is also persisting, with long queues of vehicles and high cost transport fare being the lot of residents of Edo State since  the #EndBadGovernance protest.

Most fuel stations especially in Benin City, capital of the state have remained closed because there is little or no products to lift, according to a fuel station owner.
However, the few who were able to get products sold between N850 to N1,000 per litre. Commuters were the worst hit.  For instance, a route which in the past attracted N200 to N400 now goes for as high as N500 and N800.
Similarly, in Kano, there was growing anger among motorists as a majority of filling stations belonging to oil marketers had virtually run out of stock for the past few days.

The situation has become even more challenging as motorists are forced to rely on black marketers who sell fuel at exorbitant prices.
The fuel shortage in Kano has led many government workers and businessmen to resort to trekking a long distances to their various destinations.
One of the residents, Abubakar Sadiq said he was forced to park his car because of non- availability of the fuel at filling stations and exorbitant price at the black market on the other hand.

He said: “It’s frustrating and disappointing when authorities fail woefully to provide lasting solution to fuel scarcity. Despite promises and efforts, the issue remains unresolved.”
In Kaduna, there seemed to be no respite for residents  as fuel scarcity continued to bite harder, with the few fill stations that had petrol selling at exorbitant prices.

At the Rain Oil filling station in Barnawa area of Kaduna metropolis, petrol sold for N895 per litre; Omosco filling station along Yakowa road, was selling at N960 per litre while some black market filling stations at the outskirts of the town were selling the product for between N1000 to N1,100 per litre.
Some of the NNPC filling stations which usually sell the product at N620 per litre, especially those located  at the Stadium Roundabout, Barnawa- near Living Faith Church and  Kachia Road, after Indomie factory were not selling fuel.

Fuel queues persist in Lagos, others despite NNPC assurances

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Fresh trouble over supply volume in Dangote refinery petrol

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Fresh trouble over supply volume in Dangote refinery petrol

LAGOS — More controversy has emerged in the execution of a sale-purchase deal on premium motor spirit, otherwise known as petrol, between the Nigerian National Petroleum Company Limited, NNPCL, and Dangote Refinery.

Findings by Vanguard yesterday indicated that while the NNPCL believes Dangote cannot supply an adequate quantity of the product, Dangote told Vanguard it had already delivered 111 million litres of the product within three days (last Sunday to yesterday), adding that loading was still ongoing steadily.
NNPCL last weekend said Dangote could only deliver 16.8 million litres out of the 25 million litres it initially agreed with NNPC.

A source at the NNPCL also told Vanguard, yesterday that the refinery is struggling to deliver the 16.8 million litres it promised.

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But with the latest delivery figure it disclosed, Dangote must have significantly surpassed its promised delivery as well as the national demand put at over 40 million litres per day.

This also means that Dangote can make further petrol importation unnecessary.
But against the backdrop of this latest development, Vanguard learned that importation by NNPCL may have intensified with several consignments, totalling over 135 million litres, within three weeks from September 27, 2024, with the latest import arriving Friday.

This also implies a sudden excess supply of petrol barely a few days after the country was suffocated by acute shortage of the product, resulting in a sharp rise in the price.

Speaking to Vanguard on the development, the Group Chief Branding and Communications Officer of Dangote Refinery, Anthony Chiejina, stated: “We have already loaded 111 million litres of petrol and the exercise is ongoing.

“We are refining and have no reason not to load. So, loading is ongoing and we would continue to provide the product to the market.”

Fresh trouble over supply volume in Dangote refinery petrol

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$900m FG bond: United Capital leads with 180% subscription

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$900m FG bond: United Capital leads with 180% subscription

United Capital Group has successfully led the issuance of Nigeria’s first-ever Domestic FGN US Dollar Bond, securing more than $900 million in funding with over 180 per cent subscription. The bond program, with a 9.75 per cent yield, attracted significant interest from local and international investors, including Nigerians in the diaspora, institutional investors, and non-resident Nigerians, highlighting confidence in Nigeria’s economic growth potential and financial markets.

The bond will be listed on the Nigerian Exchange Limited (NGX) and FMDQ Securities Exchange and proceeds from the issuance will be used to fund key infrastructure projects in critical sectors of the economy.

Commenting on the achievement, Chief Executive Officer of United Capital Group, Peter Ashade, said, “The successful issuance of Nigeria’s inaugural Domestic FGN US Dollar bond is a significant milestone for both the country and United Capital. This transaction aligns perfectly with our vision of transforming the African financial landscape. By providing access to innovative investment opportunities, we are empowering investors and contributing to Nigeria’s economic growth.”

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On his part, the Managing Director of Investment Banking at United Capital Gbadebo Adenrele, described the transaction as a “landmark moment for Nigeria’s capital market.” He added, “As a pioneer in this class of transactions, United Capital has laid the foundation for more significant capital raises by the Nigerian Government, other African sovereigns, and major corporate issuers.”

United Capital was the Lead Issuing House and Coordinator for the transaction, with Africa Finance Corporation serving as the Global Coordinator. Other firms involved include Meristem Capital, Stanbic IBTC Capital, Vetiva Advisory, and several other financial institutions and legal advisers.

This bond issuance reinforces United Capital’s position as a leading player in Africa’s financial markets, following recent successes like the listing of Transcorp Power on the Nigerian Exchange Limited and the issuance of Sierra Leone’s first local currency corporate bond.

$900m FG bond: United Capital leads with 180% subscription

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Naira loses N100 to US dollar at official market

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Naira loses N100 to US dollar at official market

The Naira lost more than N100 against the U.S. dollar at the official window, despite a slower headline inflation rate in August.

Data from the Nigerian Autonomous Foreign Exchange Market (NAFEM) highlighted that the local currency was sold at N1,656/$1, higher than the N1,546/$1 recorded on Monday.

However, in the parallel market, the Naira appreciated by N5, trading at N1,660/$1 compared to the previous rate of N1,665/$1.

This marks the second consecutive month of lower headline inflation, attributed to reduced food prices during the harvest season.

According to the Nigerian Bureau of Statistics (NBS), headline inflation for August was 32.15%, down from 33.40% in July. Food inflation also decelerated, reaching 37.52% compared to 39.53% in July 2024.

U.S. Dollar Index Gains Momentum Ahead of Fed Meeting

On Tuesday, the U.S. dollar appreciated against most currencies, including the Naira, as higher-than-expected U.S. retail sales data was released, raising the possibility of a less aggressive Federal Reserve.

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The U.S. Dollar Index, which tracks the dollar against a basket of six currencies, showed a slight increase, recovering from earlier lows this year. While some market pricing suggests a 50-basis point rate cut, most analysts predict a more modest 25-basis point cut.

The U.S. labor market continues to strengthen, suggesting that further relaxation of monetary policy could support economic growth. However, this high optimism may indicate that the Federal Reserve might continue raising interest rates, albeit at a slower pace.

The U.S. Commerce Department reported a modest 0.1% rise in retail sales in August, fueling hopes that the economy has stabilized through much of the third quarter.

Investors are now awaiting the Federal Reserve’s decision on interest rates, expected at the conclusion of its policy meeting later today. The last time the Fed cut rates was in response to the COVID-19 pandemic in March 2020.

While Nigeria is expected to see foreign capital inflows later in the year, it is unlikely the Federal Reserve will make aggressive rate cuts, given the current market conditions.

The dollar index, which measures the dollar against major currencies like the yen and euro, increased by 0.199% to 100.90 on Tuesday.

Fed funds futures currently reflect a 63% chance of a 50-basis point rate cut, up from 30% a week ago, while the likelihood of a 25-basis point cut is at 37%. These probabilities have shifted after reports reignited discussions of potential aggressive easing measures.

Other U.S. economic data released on Wednesday suggest that the Federal Reserve may find it challenging to implement aggressive rate cuts. U.S. business inventories increased by 0.3% in July, and factory production rebounded in August.

Present fundamentals indicate that the market is already pricing in some rate cuts over the next several months, though some analysts warn that the market may be moving ahead of itself.

Naira loses N100 to US dollar at official market

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