NNPC Blames Bad Weather for Shortage at Fuel Stations.
The Nigeria National Petroleum Co. Ltd. (NNPC) has attributed the recent fuel shortages at gasoline refueling stations in Abuja and other parts of Nigeria to adverse weather conditions rather than a lack of supply. This shortage has led to long queues at various stations.
NNPC explained that the shortage of premium motor spirit (PMS) was primarily due to logistical challenges caused by recent weather disruptions. A thunderstorm severely impacted the ship-to-ship transfer of PMS, affecting berthing at jetties, truck load-outs, and the transportation of products to filling stations. The flammability of petroleum products and compliance with Nigerian Meteorological Agency regulations meant that loading petrol during rainstorms and lightning was not possible.
Particularly in Abuja, the truck routes from coastal fuel terminals to the capital city were flooded, exacerbating the supply issues. The NNPC is actively working with relevant stakeholders to address these logistical challenges. “Loading has commenced in areas where these challenges have subsided, and we are hoping the situation will continue to improve in the coming days and full normalcy will be restored,” the NNPC stated, urging motorists to avoid panic buying and hoarding of fuel.
In addition to the weather-induced challenges, Reuters recently reported that Nigeria’s debt to gasoline suppliers had exceeded $6 billion, doubling since April. This debt increase is due to the NNPC’s struggles to bridge the gap between fixed pump prices and international fuel costs. NNPC’s chief executive, Mele Kyari, confirmed that the company is seeking a loan to cover 30,000–35,000 barrels per day of crude production but denied any issues with covering gasoline payments.
Two months ago, NNPC also acknowledged fuel queues but assured that there was no upcoming shortage. At that time, the NNPC claimed to have enough stocks for over 30 days with more than 1.5 billion liters available.
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The NNPC is collaborating with relevant downstream agencies, labor unions, and security operatives to address hoarding and other unwholesome practices. The Nigerian Midstream & Downstream Petroleum Regulatory Authority (NMDPRA) previously dismissed concerns of fuel shortage following the new administration’s removal of a fuel subsidy last year, which was later partially reinstated.
In response to rising living costs, the Tinubu administration reimplemented part of the fuel subsidy. This move, confirmed by the International Monetary Fund in a February 2024 financing assessment report, aimed to cap retail fuel and electricity prices and partially reverse the fuel subsidy removal. The NMDPRA assured that there is ample PMS supply to meet demand and urged Nigerians to remain calm and avoid stockpiling fuel.
