Fuel Scarcity Dampens Christmas Celebrations

Oil & Gas
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Friday, December 29, 2017 /08:55AM / FDC

Christmas 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.

There are speculations that the fuel scarcity may persist due to supply constraints. According 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. 

Some 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. 

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