Lack of fuel: FG accuses illegal border crossers

According to the Nigerian government, cross-border traffickers divert PMS intended for the Nigerian market, which is why there is a continuing fuel shortage.

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced this in a statement on Friday.

They were reassured that Nigeria has more than 1.6 billion liters of PMS as of January 26, 2023.

Diversion: The NMDPRA said smugglers are diverting PMS meant for the Nigerian market, which contributes to scarcity.

“The current distribution hitch is heightened by the activities of cross-border smugglers, who divert PMS meant for the Nigerian market to neighboring countries where PMS prices are significantly higher than Nigeria’s regulated price.”
They added that engagement has started with the Nigerian Customs Service to address the issues.

Sufficiency: The energy regulator also noted that Nigeria has enough PMS capacity to supply current demand, saying:

“The NMDPRA wishes to reassure all Nigerians that there is PMS sufficiency of over 1.6 billion liters as of January 26, 2023, both on land and at sea.”
Arbitrage: They also blamed the price arbitrage between Nigeria and West African countries on the Russian invasion of Ukraine, saying:

“The price arbitrage between Nigeria and neighboring countries has continued to grow due to inflation and the regional impact of the Russia-Ukraine conflict on the global energy value chain, including international freight rates and coastal vessel charter rates.”
The agency said it is working with NNPC to address certain measures, including the automation of product sales interfaces, rehabilitation of the critical fuel distribution road network, and a modest adjustment in the cost of product transportation to cater for the impact of high diesel prices on transporters.