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EXPOSED! 13 Reasons Fuel Crisis Persists in Nigeria [ – A Must Read Article by Everyone]

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#8:. CORRUPTION, DIVERSION, SMUGGLING

Despite a hugely inadequate supply by NNPC, a significant volume is being diverted by corrupt officials who connive with marketers and transport owners to divert allocations from depots either to hoard in underground tanks to create artificial scarcity, or smuggle to neighbouring countries to earn higher profits.

The Minister of State for Petroleum Resources, Ibe Kachikwu, was stating the obvious when he said this week that at least 30 per cent of fuel allocations meant for different parts of the country were diverted daily to neighbouring countries like Cameroon, Chad, Togo and Benin Republic.

Despite efforts by the NNPC to curb such sharp practices by publicizing the daily truck outs from the depots, it was hardly enough to deter these saboteurs, who work with insiders to undermine the system.

Whereas marketers are supposed to get the product at the depots at about N77 per litre to retail at N86 at the pump, reports say corrupt depot officials give the allocations to marketers at about N105 per litre.

To recover their costs, such allocations are usually diverted to remote locations in the hinterlands where they are sold at cut throat prices of between N150 and N200 per litre to desperate consumers.

#9:. FOREX CRISIS

Even those marketers that had allocations to import and supply petroleum products are unable to do so due to lack of foreign exchange following the restriction imposed by the Central Bank of Nigeria on access to FOREX by some importers.

Some fuel marketers are hardly able to access dollars and open letters of credit for their imports.

Banks are reluctant to provide credit lines to enable marketers bring in more products. They are more interested in recovering outstanding amounts in terms of interests on previous loans and the differentials in foreign exchange rates.

This is at the heart of the current fuel crisis.


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