Petrol Shortage: Consumers to pay more for petrol as forex drops to N1,621/$

Nigerians are bracing for another wave of hardship as the naira continues to weaken, driving up the cost of imported petrol. The exchange rate recently dropped by 1.6%, plunging to N1,621/$ from N1,595/$, which spells trouble for consumers already battling the skyrocketing cost of living. Private depot owners in Lagos and surrounding areas have responded by increasing the price of petrol by 35.2%, with depot prices soaring from N710 to over N960 per litre.

The surge in petrol costs has triggered a ripple effect across the economy, pushing up transportation fares and further straining household budgets. Reports indicate that the landing cost of petrol, factoring in various charges like finance, freight, and storage, now exceeds N1,200 per litre. While NNPC and major marketers are selling petrol at N895 per litre, independent sellers have hiked prices to between N900 and N1,000, depending on the location, leading to long queues and widespread scarcity.

Many filling stations remain shut due to supply shortages, with illegal operators capitalizing on the crisis by selling petrol in jerry cans at exorbitant prices of N1,200 to N1,500 per litre. Commuters are feeling the pinch, with transport fares doubling in some areas. For instance, the cost of commuting from Victoria Island to Mile 2 has surged to N3,000 from N1,500, leaving many struggling to cope.

As the government continues massive petrol importation to meet domestic demand, experts and stakeholders are calling for urgent interventions to stabilize prices. The Nigerian Bar Association has joined the outcry, urging the government to reverse the new pricing regime, warning that the current trajectory is unsustainable and will only deepen poverty and hardship for millions of Nigerians.