THE RETURN OF FUEL

These vehicles and their owners here, slept in this filling station till the next day.

 As we approach the Benin by pass high way in Edo State mid western Nigeria, we saw a filling station selling the much needed fuel for our Toyota high a5ce bus. We were happy there was no fuel queue. We would just drive in straight to the fuel pump and buy our petrol.

We asked the fuel attendant for price, she told us 195 naira per liter. We needed to buy 60 liters if we must make it to Sapele area of Delta State and still have enough fuel for the journey the next day. Our calculation showed that we must pay N 11, 700 :00 k

THE PRICE OF FUEL
Petrol sells at the government subsidized price of N 86:50 k per liter but due to a prolonged scarcity of fuel some filling stations are now selling at N 195 :00 k per liter.

In Sapele township, we asked the price of fuel in another less busy filling station, they told us N 190 ;00 k per liter.

I did not return back to Lagos with our bus but moved to Warri and Ughelli in Delta State. I found that a liter of fuel varies from N 180- 190: 00. Delta is a major oil producing state in Nigeria, yet the people are gradually getting used to the increased price of fuel.
A friend said, if you want to buy fuel at the subsidized rate, go to any of the NNPC mega filling stations and join the queue for half a day before you may buy fuel.

THE NNPC MEGA STATIONS
The government started building mega filling stations owned by the Nigerian National Petroleum Company (NNPC) as a reaction to the National Union of Petroleum and Natural Gas Employers (NUPENG) industrial strike of the 1990s that almost grounded the military government of General Sani Abacha when truck drivers refused to lift fuel from depots to supply to filling stations.

The government responded by purchasing hundreds of fuel trucks and started building hundreds of mega filling stations in many towns and cities across Nigeria so that the NUPENG  can never ground the country in future.

These mega filling stations and their trucks may now become the last to retain fuel price at the government rate of N 86: 50k per liter.

Filling stations refuse to sell to gallons.

THE TRUE PRICE OF FUEL

Selling fuel at government regulated price may no longer be feasible due to technical, global and investment realities.
In 2012, former President Jonathan wanted subsidy on all refined petroleum products removed - pms fuel, diesel, kerosene, aviation fuel - because it is becoming too expensive for government to fund, reaching over N 1 trillion a year.
The infiltration of the subsidy payment system by very smart, corrupt business men who receive payments for products they never supplied.
Discouraging investors from building refineries due to government regulation policies.

A fuel discharge operation at night.

Millions of Nigerians refused the removal of subsidy and staged perfectly organized peaceful protests in most towns and cities across Nigeria, forcing the Jonathan led government to retain the subsidy but adjusted the price to N 87: 00 per liter and introduced the Subsidy Re investment fund.

Few years later, billionaire business man, Aliko Dangote will face the risk and began the construction of a large refinery in Lagos State so as to meet the demands for fuel. Dangote may not sell fuel from his refinery at the government regulated price of N 86: 50 per liter.

In Lagos state and few other cites, most filling stations would prefer to sell fuel at nights to the gallon boys called black markets, who re sell to cars and the public at N 120- 150 per liter during the day time. This may be the real price of fuel because whenever there is scarcity people buy fuel from the black markets at N 120- 150 per liter which is also the same price in some eastern states of the country year in year out.

If you must buy fuel at N 86: 50 k you must be ready to queue up at a filling station for up to 12 hours  everyday.

If the government removes the subsidy on petroleum products as at today - we believe they will do so - the true price of fuel will be 120 - 190 naira per liter. This price will vary from city to city across Nigeria as distance of loading terminals and depots will affect supply and transport logistics.

The government is looking for ways to cut spending, save money, raise money and spend on other critical sectors and infrastructures in the country.


NO NEED TO SUFFER OURSELVES

Crowd, cars and traffic. Safety in this kind of environment is zero.

The usual long wait and queue for fuel is chaotic and very dangerous.

In some places in Lagos state, people abandon their vehicles permanently in filling stations in perpetual search for fuel. Many others even sleep at filling stations hoping they will open for sale during the mid night and sell even at higher prices.

Many others carry between 5- 50 liters of gallons and queue for longer hours hoping to buy fuel to run their generators at home or small business shops. But nowadays, fuel attendants may not sell into gallons if such gallons do not belong to their small cell of black market operators. People now loose out the fuel tanks of their generators and bring to filling stations to buy fuel. This is the most dangerous method to buy fuel yet people in desperate need will do anything to get fuel.

President Buhari believes that fuel subsidy is a scam and laden with corrupt processes and practices. As the people look up to him to do a good job, reality is gradually setting in and that is the Buhari led federal government may one day cancel fuel subsidy and if that happens, Nigerians must adjust as they are now getting used to the real price of fuel.