Worse Energy Crisis Looms Over Global Supply Shortfall

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Declining global petroleum products refining due to crude supply shortfall is set to worsen Nigeria's diesel and petrol scarcity, as the country continues to

According to him, NNPC approved ex-depot prices is N148 per litre but now private depots are selling between N162 and N165 per litre while regulated pump price is N165.

According to him, the current scarcity being witnessed in Lagos is because majority of petrol stations in the state are owned by IPMAN members who are finding it difficult to operate in a hostile environment. Akinrinade said: “Now, these private depot owners have increased the ex-depot price of PMS from N148.17 to N162 per litre. That is the amount they are selling to us.

He, therefore, urged the government to direct the private depots to revert to the old ex-depot price for PMS or deregulate the downstream sector to allow market forces determine the price. For Lagos it could be a little distribution challenge and unfortunate behaviour of motorists who would not believe when the authorities say there is fuel. Everyone would queue up because of a minor challenge.”The marketer who would not want to be named said some petroleum products bearing vessels were expected to berth at the weekend but nevertheless depots are operating at capacity.

Nigeria spent a total of N4.56 trillion on the importation of premium motor spirit in 2021, about 128 per cent higher than the N2 trillion spent on fuel importation in 2020.This is according to foreign trade data recently published by the National Bureau of Statistics, NBS. The Nigerian National Petroleum Company, NNPC, Limited NNPC reported in 2020 that it earned a revenue of N151.8 billion in from premium motor spirit import and another N39.9 billion in AGO.

He said Nigeria would not suffer any hiccups should there be supply disruption from Europe as the refinery capacity can take care of local market and even more for export. According to Rystad, the loss of Russian refining owing to operational outages and product containment challenges had caused a diesel/gasoline hole greater than 1 million barrels per day in Europe that is not easy to plug.

On the supply side, Russia’s invasion of Ukraine has disrupted product flows and crude flows to the European market at a time when the rest of the world has limited ways in which to respond.

 

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