The real reasons for fuel scarcity in Nigeria – Kachikwu

Fuel scarcity in one of filling stations in Lagos

Lack of sufficient reserve, low clearance speed of petrol at the ports, diversion of products are some of the reasons for the ongoing fuel crisis being experienced in the country, says Minister of State for Petroleum Resources, Ibe Kachikwu.

Mr. Kachikwu said this while speaking before a meeting of the joint committee of the Senate and House of Representatives. The meeting was convened to find a lasting solution to the fuel crisis.

“The causes were; first, diversion was very key, second, there were logistics issues,” he said. “Once those diversions began Apapa Wharf was a problem to be able to move things due to bad roads, lack of sufficient reserve in our system making us unable to respond to the supply gap arising largely from the fact that private sector pulled out from supply.

“There has been a loose enforcement on diversion in the country. We have not been able to police our depots adequately.”

He explained that disparity in the landing cost has prevented the private marketers from importing petroleum into the country.

“Going forward we need to address the issue of pricing, there is a disparity between landing cost and cost we are selling. If we are going to sell at N145, we need to put some mechanisms in place so that the private sector will go back importation. We have a committee looking at this and we are still going to submit a report for review.

“Currently, the landing cost of product is N170 to N171 and we sell at N145 and the price we are allowed to sell is N145.”

He said the executive is currently working on modalities to permanently resolve the petrol crisis and prevent it from rearing its head any other time.

“We need to make marketers responsible for every tank of fuel up until point the point of delivery.

“One mechanism will be to look at working with CBN to have an exchange rate mechanism that enables them to stay at N245 price. If we do that, then they (marketers) can import without price differentials.

“In moments of normalcy, we are fine. In moments of emergency, our system is slow to respond. We also need to address our refineries.”

The fuel scarcity across Nigeria has been on for about one month and worsened during the Yuletide season. While the scarcity has reduced in major cities like Abuja and Lagos, due to the efforts of the NNPC and petroleum ministry, it is still on in many other states like Kano and Akwa Ibom. In such states, many filling stations that have the product still sell at over N200 per litre, contrary to the N145 per litre official price.


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  • Konkolo

    Please sing us a new song. Nigerians are tired of this old song for years. Morons in power.

  • forestgee

    The Apapa Road is a Federal Road…who do you blame? But the final solution is to refine the needed volume in Nigeria

  • thusspokez

    “The causes were; first, diversion was very key, second, there were logistics issues,” he said. “Once those diversions began Apapa Wharf was a problem to be able to move things due to bad roads, lack of sufficient reserve in our system making us unable to respond to the supply gap arising largely from the fact that private sector pulled out from supply.

    We have blamed President Buhari, and Buhari the Minister of petroleum resources and have called the former to fire the latter for gross incompetence. Of course the Minister of State for Petroleum Resources, Ibe Kachikwu should be in the firing line too. But here we see one more indication that the civil service is severely broken and indeed unfit for purpose.

    All the problems and causes of the fuel scarcity listed by Ibe Kachikwu would have been better handled if civil servants at the ministry had done ‘what-if’ and impact analysis and produced ‘contingency plans’. Often, a minister would commission it, but a good civil service wouldn’t wait to be ordered to do so.

    • man

      good impact analysis should be done but when you have people like maina the hustler as a director in the civil service, what do you expect??? kachikwu would have to hire consultants because the civil servants are unfit.

  • man

    kachikwu looks like a smart man. he understand the root cause, insufficient reserves, etc. But if cbn jumps in, everything go go akara. we can not continue to have this problem everytime. even buhari as the petroleum minister can not be held accountable.

    • Dawood

      Kachikwu should be fired. For him to state that 4,500 trucks went missing and he has no clue where they are is astounding. Why are those trucks not monitored? By soldiers?

      • man

        and baru should go on vacation? i see. do you realise buhari is the petroleum minister??

  • sympa

    At least, he’s explaining what’s wrong, not shifting blame!

    • Arabakpura

      He used to tell how much they were saving by not paying subsidy; they need to tell us now how much we have in that account! Lies have expiry date!

  • Watch man

    Two months ago you guys told us you have enough reserve to last tilll the end of the year. Now you are saying lack of adequate reserve. So it means you were lying. How can anyone believe you guys? The truth is that you gang do whatever you like because Nigerians have not learnt to hold their so-called leaders accountable.

    • KDM

      Oga Kachikwu thank you for giving us a good reason for fuel shortage. But think of this, that a village Niger Delta man can refine the crude oil using an ordinary drum – and your people will proudly destroy their work to pave way for importation. sir, tell Nigerian the truth again on why we can not refine the product in this country. thank you

      • Arabakpura

        And yet we are mouthing made in Nigeria! Hypocrites all if them with Buhari as their chief!

  • Arabakpura

    So, at the end of the day we didn’t successfully deregulate the Petrol price as the government had touted? What else will be their legacy? I remember Buhari saying that he didn’t know why fuel should cost more than 45 Naira! There has been nothing that that man said that has ever come to pass!