Fuel Scarcity Looms as Marketers Unable to Import Fuel Over Forex Shortage.
Should the current situation persist unchecked, Nigeria could once again find itself grappling with the challenge of petrol scarcity. The predicament arises from the frustration faced by petrol importers in securing the necessary foreign exchange to procure the commodity.
The scarcity of foreign exchange has led to importers being unable to initiate orders for fresh supplies. Certain oil marketers in Nigeria express their concern that the hindrance in accessing foreign exchange might disrupt their planned importation of petrol. This disruption to their intended timeline, they argue, could subsequently impact the distribution of petrol to the Nigerian populace. An undisclosed source within the Independent Petroleum Marketers Association of Nigeria (IPMAN) relayed this information to Legit.ng on a confidential basis.
A week ago, GoldenNewsNg reported a potential surge in petrol prices to approximately N720 per litre, attributing this to the upswing in global crude oil prices and the devaluation of the naira. Only the intervention of the Nigerian National Petroleum Company Limited (NNPCL), through an official press statement, managed to assuage the apprehensions. The statement categorically clarified that there were no intentions to raise the petrol price. Further assurance was provided by President Bola Tinubu’s Special Adviser on Media and Publicity, Ajuri Ngelale, who addressed State House correspondents, reiterating the government’s stance against a petrol price hike.
The impasse surrounding foreign exchange has caused marketers to suspend their importation activities. The source informed Legit.ng that the escalating exchange rate and the scarcity of foreign exchange have stymied the ability to place new product orders.
In their words:
“Procuring foreign exchange for transactions via the import and export (I&E) window has proven to be an uphill task. We have now turned to the existing inventory within the Nigerian National Petroleum Company Limited (NNPCL) depot. Consequently, without ready access to foreign exchange, the feasibility of conducting imports becomes severely restricted.”
The source also disclosed that the I&E Window, which historically offered a more favorable forex rate ranging between approximately N740 to N760 per dollar compared to the open market rate of N950 per dollar, is presently grappling with a liquidity shortage.
As a result, it has been unable to provide the requisite funds necessary for dealers to import Premium Motor Spirit (PMS). This situation has compelled dealers with import intentions to suspend their plans for importing petrol.
