The fuel crisis in Nigeria shows no sign of easing as a combination of factors continues to cripple the government's ability to maintain steady fuel imports. A staggering $6 billion debt to petrol suppliers, a lack of liquidity, and other economic challenges have placed immense pressure on the Federal Government, raising doubts about when the situation will stabilize.Oil marketers have reported that they are unable to import petrol due to the soaring foreign exchange rate, which has hit a staggering $1,500 per dollar. This sharp increase has pushed the landing cost of petrol to over N1,100 per litre, making it difficult for businesses to operate sustainably. As a result, the country's petrol supply chain has been severely disrupted, contributing to an ongoing shortage that shows no sign of abating.The Nigeria Employers Consultative Association (NECA) weighed in on the issue, highlighting how the country's economy has been severely impacted by these challenges. NECA emphasized that the fluctuations in the foreign exchange market, coupled with continued low crude oil production and a high monetary policy rate, have made it increasingly difficult for businesses to thrive.A closer look at the supply chain reveals that key players have been forced to adopt measures to manage the limited fuel supply. Major marketers, dealers, and depot owners are currently securing petrol at around N560 per litre, which is then sold to independent marketers at prices between N670 and N680 per litre. Independent marketers, who bear the additional costs of transporting the product across various parts of the country, particularly remote areas, pass on the cost to consumers at prices ranging from N700 to N900 per litre, depending on location.Unsurprisingly, long queues have resurfaced at the few filling stations that remain operational, with many others closing their doors due to the shortage. The disruption to daily life has become a common feature in Nigeria, as motorists spend hours in line hoping to secure fuel, while businesses face challenges keeping operations running smoothly.
