December 29, 2017 /08:55AM / FDC
was subdued this year as Nigerians were once again faced with the throes of
fuel scarcity. Activities were stifled and movement restricted as consumers
hassled for and bought fuel at exorbitant prices. The immediate impact was felt
on domestic transport fares which spiked by at least 100% (a combination of
scarcity and the Christmas effect). The only consolation was that power supply
was relatively stable. So you could still enjoy a quiet Christmas at home
without going out.
are speculations that the fuel scarcity may persist due to supply constraints.
to the Nigerian National Petroleum Corporation (NNPC), it has increased its
petrol import to address the lingering scarcity. However, a higher oil price
($65-$66pb) and current exchange rate of N306/$ (IFEM) have increased the
landing cost of Premium Motor Spirit (PMS) in Nigeria; a cost presumably borne
by the NNPC.
parts of Lagos have seen some relief while the scarcity continues to bite in
Abuja and other states. This could be because people have travelled for the
holidays and are yet to return. A clearer picture will be portrayed in the
early weeks of January.
7. Local Refining, The Obvious Solution