Of fuel and scarcity

[Calllaris]

On Wednesday of last week, something happened and the prices of the fuel, which had been very high for up to 6 weeks, automatically crashed.

 

Before that price crash, black market had sold as high as #700 per litre! while pump prices at few filling stations that had fuel sold up to #250, juxtaposed the regular price of #87 per litre.

 

After the crash, most filling stations are now selling between #120 and #130 per litre, while the black market sells between #180 and #250, depending the municipal.

 

I'm sure we all are aware of this situation but what about the causes?

 

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Yesterday as I walked into a unisex salon with a friend if mine, to groom my locks, I 'gist' her of how lazy people are nowadays and how they 'always ready' to syphon you at the slightest opportunity; how I sent a 'person I work with, to buy some fuel and how he came back after two hours! with fuel alright but less quantity than what I had sent for (the can was marked at 30 litres but the fuel he brought were levels below the mark) When I asked why the fuel wasn't 'up to', he said he bought at black market (after two hours?). I told him I couldn't understand why he'll buy for #200 when he could go purchase at the fuel stations for less? "Mama, you need to see the queue at the fuel satation, na catholic!".

 

I couldn't dispute further. Perhaps he bought at black market or not, I would never know, but I know there are two fuel markets now, the black and normal market.

 

 

After my story, without knowing my reg. hairstylist was listening all the while, she asked "but Sis, why actually was/ is the fuel scarce?" To which I gave a shaky response of what I felt was the reason for the scarcity?

 

My friend readily peek out her head from under the hair dryer to object my reasons, giving her own explanation of why fuel was scarce to which the man getting a shave at the men's section contested, as he authoritatively co joined a somewhat lame reason with a statement -- Buhari wants to crash fuel price to #50/ litre -- as the reasons for the fuelscarcity (?)

 

Within few seconds, the house was hot with various reasons to why fuel was scarce? what Buhari will do about it? and why there is still a huge #33 difference from the official price? The various responses left most people more confused and the issue more unclear!

 

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Anyhow, I'm mostly worried about the inflation on the official #87/ litre, and how it seems everyone has accepted #120/ litre as normal price at fuel stations, even where there are few queue's

Will it end? ever get back to normal? or is the scarcity, price hype/ fluctuations and the black market now part of us forever?

 

So why is fuel scarce?

[Hawken]

Well I have no idea as to why fuel suddenly became scarce but I do know that just a few hours after inauguration, Prof Osinbanjo tweeted a number to which one could report any filling station selling fuel above 87N. Is the number working? Are people calling? I have no idea. But at least this means that they are aware of the situation and are taking steps to rectify it.

[Calllaris]

Phone number, will like to try if that works. But solving this may require a more structural approach. Its affecting everything.

[Iris]

Number? Would have been blocked by now...haha.

[Hawken]

Lool yeah, Nigerians musta called the heck out of that number by now...

Hopefully.

[Abystacy]

From a source, the main reason for fuel scarcity across the country are the looting of the $12 billion domestic gas fund under President Goodluck Jonathan’s watch, the Administration’s failure to pay fuel subsidy and the cost of interests on bank loans to oil marketers, thus making it impossible for them to begin another round of importation of refined petroleum products but according Ngozi Iwela, She said that it has more to do with pipeline vandalism and logistics and not payment of claims to marketers. Whatever the case may be they are all talking bullshit.

 

The black market hustlers are capitalizing on this to sell 5ltrs of fuel for 4000. Take it or leave it. Who knows what they mixed inside which isn't even safe for your engines or generators. I live somewhere in lagos, and I had to enter ferry on more than *** occasion to cross over to Ikorodu just to buy at 150 per lite of which the metres are very much adjusted.

 

To me, I believe all these unnecessary increase will stop if fuel subsidy is remove.

 

1....The question on everybody's mind is will it work?

 

2....How can this be achieved?

 

The answer is that its not going to be easy but its definitely worth trying. After spending trillion of Naira and wasting years on fuel subsidy and yet no results instead it keeps going high and high why not.

 

 

2. To achieve this, First of all our government should be more concerned in promoting and redefining our refineries. The government must utilize our resources more efficiently to create social welfare and improve our infrastructure in other for this country to move forward. They should also implement transparent and well-structured reforms, the trillions of naria spend so far on fuel subsidy which is highly unacceptable and detrimental to our country growth could have been use to rebuild our refineries. I believe if the fund are used wisely to rebuild our refineries, it could be put to far greater use. Then we can talk about getting it down to 45per litr or at least getting a stable price.