Why kerosene, fuel and diesel may sell for N500

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Nigeria will likely be hit by another round of fuel and kerosene scarcity this week if the Buhari’s led government fails to negotiate with PENGASSAN.

As at today, PENGASSAN and other sister unions have stopped lifting all petroleum products from depots across the country.

President Muhammadu Buhari officially ended subsidy for kerosene by hyping its price from ₦50 per liter to ₦83.

According to PPPRA, the landing cost for Kerosene is ₦57.98 per liter, while middlemen makes an average of ₦14.30.

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In some cities, Kerosene sells for as much as ₦300 naira.

Industry watchers believe the current kerosene scarcity is probably related to diversion of the product to airplane owners.

Ariplanes can fly on Kerosene. It is actually cheaper than the standard recommended jet fuel (Jet A1).

Switching aviation fuel with kerosene has become an industry custom and it is not hidden from stakeholders.

Diesel has become expensive following inability of marketers to import the product due to scarcity of foreign exchange.

Most depots in Apapa are presently out of the product.

One oil marketer stated that “The diesel market is deregulated, which allows marketers to sell the product at a competitive price.

“Any marketer selling the product at above ₦200 may have also paid high prices at the depots.”

PENGASSAN is not helping matters either. The Kerosene and diesel scarcity will soon affect fuel too.

Filling stations in Lagos yesterday did not have kerosene and diesel indicating a looming nationwide scarcity.

According to the National Public Relations Officer of PENGASSAN, Emmanuel Ojugbana, “The inability of the government to fund the Joint Venture (JV) operations and settle cash call arrears has denied the country of new investments, while the existing operations and activities are being stalled.

“This has resulted in lack of new job opportunities, while our members, who have been in employments, are losing their jobs because their employers could not meet salary obligations to them.”

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“The Union demands immediate action of government to address these cash call arrears to avoid imminent collapse of the industry.

“The government must provide feasible guidelines to clear all outstanding payments and evolve a pragmatic system of funding the joint operations,”

If President Buhari fails to negotiate with PENGASSAN, prices of petroleum products may hit ₦500 naira.