Threatening the return of fuel queues in Nigeria .. Who is responsible after the patent shortage of supplies?  - energy

Despite the relative calm of the fuel crisis in Nigeria, and the absence of queues in front of stations from the scene, the Association of Independent Oil Marketers threatened a return to the crisis.

The head of the union accused the Oil Regulatory Authority for the mid- and downstream sectors of being behind the crisis, after a number of its members delayed the payment of transportation fee claims for a period of 8 or 9 months.

The official called on Nigerians not to blame the lack of supplies for the upcoming crisis, pointing out that the members of the authority responsible for transport, storage and marketing (the mid-sector), as well as refining, processing and distribution (downstream), are the ones who cause the queues to return again.

Transportation dues

The head of the Independent Oil Marketers Association of Nigeria, Bashir Dan Malam, has monitored the amount of transport dues that the members of the Oil Regulatory Authority for the mid- and downstream sectors have not paid for between 8 and 9 months, amounting to nearly 500 billion Nigerian naira.

fuel in nigeria
Nigeria’s fuel sector braces for new crisis – Photo courtesy of Afrika News

(Nigerian Naira = 0.0024 US Dollar)

Dan Mallam called on the country’s government to pressure members of the regulatory body to make the payments due, and to intervene before the crisis worsened, after the union members stopped working as a result of high diesel prices hampering their ability to transport the commodity.

The threat of the head of the Association of Independent Oil Marketers to return fuel queues in Nigeria, after the delay in payment of dues for more than 8 months hindered the union’s members from continuing their business, despite the availability of supplies, unlike previous crises.

Dan Mallam added that only 5% of marketers agreed to supply oil products, after the Oil Regulatory Authority failed to pay their dues to them, despite their success in providing supplies with the rise in diesel prices.

He believed that delaying payments to marketers would renew the fuel crisis in Nigeria and its spread throughout the country, according to the local newspaper, “The Punch”, during his speech at a press conference in Kano state.

Fuel crises in Nigeria

Recently, the fuel crisis in Nigeria affected the aviation sector, after high prices and lack of supplies caused the cancellation of flights and the shift towards ground flight, after the prices of aviation fuel reached record levels.

fuel in nigeria
Nigeria’s fuel prices and supply shortages are renewing queuing scenes – Photo by Bloomberg

Fuel crises in Nigeria have worsened since the fourth quarter of 2021, with the start of talk of canceling fuel subsidies under the provisions of the Oil Industry Act that was approved in Abuja last year.

Talk about the abolition of fuel subsidies in Nigeria opened the door to protests, especially as it coincided with a severe shortage of supplies, which prompted Nigerians to line up at gas stations in huge numbers.

Nigerian President Muhammadu Buhari made an amendment to this year’s budget, which included adding new allocations for fuel subsidies in Nigeria in an attempt to contain popular anger.

The National Oil Company also announced, at the beginning of this month, an increase in spending on subsidies, with a volume of spending that doubled to 307% within a year.

She said that the support allocations increased in the period from March 2021 until last month, from 60.39 billion naira to 245.77 billion naira.

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