“N2,000/Litre”: Filling Stations in Border Towns Adjust Petrol Prices to a New High

• Border communities in Ogun State are grappling with the high cost of petrol due to the persistent scarcity
• In border communities in Ogun State and other areas, petrol sells for as high as N2,000 per litre in the black market
• A survey shows that petrol stations in Lagos and environs have also hiked their prices to N950 per litre

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Petrol has started selling for N2,000 per litre in border communities in Ogun State and other areas.

Residents report that the ongoing petrol scarcity has worsened their plights as they battle the ban on selling petroleum products in border areas within a 20-kilometre radius.

FG bans the sale of petroleum products in border areas

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In 2019, former President Muhammadu Buhari prohibited the supply of petroleum products to Nigerians living within 20 kilometres of Nigeria’s borders with neighbouring countries to forestall the diversion of subsidised petrol.

The Buhari administration later granted waivers to some filing stations to sell petrol in the border areas. Still, the number was said to be insignificant to ease the plight of the population.

According to reports, many residents rely solely on the black market to buy petrol in the border areas, which sell at exorbitant prices.

Petrol sells for N2,000 per litre

According to the residents, the situation is dire as a litre of petrol now sells for as high as N2,000 in the black market.

The development comes as petrol hit an all-time high of N950 per litre in Lagos and other parts of the country.

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A survey conducted by Legit.ng shows that many petrol stations in the Lagos metropolis have adjusted their prices to sell between N850 and N950, blaming the high cost on scarcity.

Commercial drivers tell Legit.ng that the scarcity has also caused transportation costs to hike by as much as 30%.

Oil marketers give timeline to end scarcity

Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) disclosed on Sunday, April 28, 2024, that the current scarcity will take at least two weeks to clear, Legit.ng reported.

Vanguard reports that IPMAN's Public Relations Officer, Chinedu Ukadike, said the product is currently out of stock in Nigeria.

He said it is challenging to source petrol because most European refineries are undergoing turnaround maintenance.

According to him, only 1,050 marketers have had their licenses renewed by the agency.

Nigerian refinery makes profits

Legit.ng previously reported that the Nigerian Content Development and Monitoring Board (NCDMB) disclosed that it had received an interim dividend of N450 million out of the N1.5 billion declared by Waltersmith Refinery and Petrochemical Company Limited.

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NNPC speaks on reason behind current fuel scarcity as marketers set date queues will disappear

The NCDMD invested about $10 million in 2018 to acquire a 30% stake in the 5,000 barrels per daily modular refinery project in Ibigwe, Imo State, to support the Nigerian government’s policy on modular refinery, stimulate investment and create jobs.

The minister of Petroleum Resources (Oil), Heineken Lokpobiri, recently accused the Board under former Executive Secretary Simbi Wabote's leadership of making bad investments of about $500 million.

Source: Legit.ng