AP

Nigerians blame fuel shortage on Ukraine war, fixed prices

Jun 23, 2022, 11:53 AM | Updated: 12:19 pm

Cars queue outside a petrol station in Lagos, Nigeria, Wednesday, June. 22, 2022. (AP Photo/Sunday ...

Cars queue outside a petrol station in Lagos, Nigeria, Wednesday, June. 22, 2022. (AP Photo/Sunday Alamba)

(AP Photo/Sunday Alamba)

ABUJA, Nigeria (AP) — Nigeria is grappling with widespread fuel shortages that are forcing motorists to spend hours in lines to buy gas and causing prices to surge for transportation and basic commodities.

Russia’s war in Ukraine has caused prices to import fuel go up by more than 100% but retailers complain they can only charge the price set by the government, causing them to operate at a loss.

The government’s promises that the shortages will soon end have not improved the situation. Fuel retailers are pleading with the government to deregulate the market to allow them set their own prices.

But the Nigerian government this week insisted that the pump price must remain the same.

“The war in Ukraine has caused an increase in the diesel price (but) you have not allowed them (retailers) to increase the price … to recover that cost. So where are they going to get the extra money?” asked Clement Isong, CEO of the Major Oil Marketers Association of Nigeria.

Nigeria’s current gas shortage — the third in 2022 — is because gas retailers are struggling with rising costs, Isong said. The cost of transporting gasoline to the depots has gone up by 80% in the past few months, he said.

“People are suffering,” he said, urging the government to allow higher prices. “What we are saying is, do it (raise the price) slowly, let it not stay fixed,” said Isong.

Gasoline shortages are frequent in Nigeria even though the country is one of Africa’s biggest producers of crude oil. Nigeria produced an average of 1.42 million barrels per day in May, according to the Organization of Petroleum Exporting Countries. However, the country must import most of its fuel because it has very few functioning refineries.

Some gas stations have gone ahead and increased their prices, which has reduced their lines, while others in Abuja, the capital, continue to sell at the government-set pump price.

The way out of the gas shortage is to allow gas stations to charge more, said Uwadiae Osadiaye, senior vice president, energy and industrials at FBNQuest Merchant Bank.

“Adjust the pump price higher so that tanker drivers are not running into a loss,” he said. Other fuel sellers agree that deregulation is “the most efficient way” out of the continued petrol scarcity.

Taxi driver Bagana Usman says his daily earnings have dropped by 60% because of the long waits he endures to get gas. He spent most of Thursday in a line for fuel.

“My prayer is for this fuel scarcity to end so that everybody will survive,” the father of two said. “Let us continue our work.”

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

American Airlines put an unspecified number of employees on leave for their involvement in an incid...

Associated Press

American Airlines CEO calls removal of Black passengers from Phoenix flight ‘unacceptable’

American Airlines put an unspecified number of employees on leave for their involvement in an incident in which several Black passengers were removed from a flight in Phoenix.

3 days ago

FILE - Crystal Baziel holds the Pan-African flag Monday, June 19, 2023, during Reedy Chapel A.M.E C...

Associated Press

The beginner’s guide to celebrating Juneteenth

For more than one-and-a-half centuries, the Juneteenth holiday has been sacred to many Black communities. It marks the day in 1865 enslaved people in Galveston, Texas found out they had been freed — after the end of the Civil War, and two years after President Abraham Lincoln’s Emancipation Proclamation. Since it was designated a federal […]

5 days ago

A Boeing 737 Max suffered damage to parts of the plane's structure after it went into a “Dutch ro...

Associated Press

Plane that did ‘Dutch roll’ on flight from Phoenix suffered structural damage, investigators say

A Boeing 737 Max suffered damage to parts of the plane's structure after it went into a “Dutch roll” during a flight from Phoenix last month.

9 days ago

This photo provided by Randy Shannon shows Mooney Falls on the Havasupai reservation outside the vi...

Associated Press

Dozens report illness after trips to waterfalls near Grand Canyon

Dozens of hikers say they fell ill during trips to a popular Arizona tourist destination that features towering blue-green waterfalls deep in a gorge neighboring Grand Canyon National Park.

10 days ago

Mugshot of Rudy Giuliani, who was processed Monday, June 10, 2024, in the Arizona fake electors cas...

Associated Press

Rudy Giuliani posts $10K cash bond after being processed in Arizona fake electors case

Rudy Giuliani, a former New York City mayor and Donald Trump attorney, was processed Monday in the Arizona fake electors case.

13 days ago

FILE - White House former chief of staff Mark Meadows speaks with reporters at the White House, Wed...

Associated Press

Former Trump chief of staff Mark Meadows pleads not guilty in Arizona fake elector case

Former Donald Trump presidential chief of staff Mark Meadows and Trump 2020 Election Day operations director Michael Roman pleaded not guilty Friday in Phoenix to nine felony charges for their roles in an effort to overturn Trump's Arizona election loss to Joe Biden.

16 days ago

Sponsored Articles

...

Collins Comfort Masters

Here’s how to be worry-free when your A/C goes out in the middle of summer

PHOENIX -- As Arizona approaches another hot summer, Phoenix residents are likely to spend more time indoors.

...

Condor Airlines

Condor Airlines can get you smoothly from Phoenix to Frankfurt on new A330-900neo airplane

Adventure Awaits! And there's no better way to experience the vacation of your dreams than traveling with Condor Airlines.

...

Collins Comfort Masters

Here’s 1 way to ensure your family is drinking safe water

Water is maybe one of the most important resources in our lives, and especially if you have kids, you want them to have access to safe water.

Nigerians blame fuel shortage on Ukraine war, fixed prices