The Independent Petroleum Marketers Association of Nigeria (IPMAN) has issued a warning that the severe gasoline shortage that has affected Nigeria for the past two weeks is likely to last for an additional two weeks. Long lines and sharp price increases at gas stations have resulted from this shortage, particularly in and around Abuja where it is most severe.

The scarcity of fuel is particularly affecting gas stations in the suburbs of the capital, where prices have skyrocketed from N680 to N870 per liter. On the other hand, a few significant vendors in Abuja City Center are still selling gasoline, despite the increasing annoyance and disturbance of their customers.

IPMAN’s Chief Chinedu Ukadike, the Public Relations Officer, explained the causes of the current fuel crisis. The main causes of the shortage, according to him, are difficulties in the importation of gasoline and considerable delays in the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s (NMDPRA) renewal of marketers’ licenses.

Only 1,050 of the roughly 15,000 fuel marketers in Nigeria, according to Chief Ukadike, have successfully had their licenses renewed by the NMDPRA, which has a major impact on the distribution of gasoline around the nation. “At the moment, there is not a product. When there is insufficient or no supply, you will notice scarcity, and lines will form at gas stations,” he said.

The only provider of petroleum products in the nation, Nigerian National Petroleum Corporation Limited (NNPCL), has ascribed these supply difficulties to logistical concerns and vessel malfunctions. With fresh shipments anticipated soon, the CEO of NNPC Group has reassured customers and marketers alike that supply chain enhancements are on the agenda.

Because we are dependent on imports, any disruption in the global supply chain will affect home supply. Furthermore, the majority of refineries in Europe are undertaking turnaround maintenance, according to reliable sources. Thus, it is now more challenging to source petroleum products,” Ukadike continued.

He went on to say that if disruptions happen, it may take two to three months to get the supply chain back to normal. “NNPC has promised us that the arrival of their vessels will result in an improvement in the supply chain. After that is done, things will resume as usual. We anticipate that NNPC will be able to restore supplies by next week or so, and that normalcy will return in another week,” he said with optimism.

One more significant obstacle is the license issue. The NNPC has lately tightened restrictions, indicating that marketers who fail to renew their licenses by the specified period will be removed from their portal. The NMDPRA has strict standards for license renewal. This portal closure has made it more difficult for marketers to request new product shipments.

“Even once the goods is delivered, you will find that this causes scarcity during this early stage of deregulation. As it stands, according to their own data, just 1,050 of the 15,000 licensed merchants on the web renewed their licenses,” stated Ukadike.

IPMAN is currently pushing the NMDPRA to speed up the licensing process for marketers who have finished their renewal applications and to extend the deadline for license renewals, which is April 15, 2024. This might perhaps lessen the existing fuel shortage and ease some of the present license renewal backlog.