March 3, 2024
#African News #News

Fuel Scarcity Looms in Nigeria as Landing Cost Hits N720/Litre

Nigeria is facing a looming fuel scarcity as the landing cost of Premium Motor Spirit (PMS), popularly known as petrol, has hit N720/litre. This is a significant increase from the previous landing cost of N651/litre in August 2023.

Nigeria faces fuel scarcity as petrol landing cost hits N720/litre

Nigeria is facing a looming fuel scarcity as the landing cost of Premium Motor Spirit (PMS), popularly known as petrol, has hit N720/litre. This is a significant increase from the previous landing cost of N651/litre in August 2023.

The high landing cost of petrol is attributed to a number of factors, including the rising cost of crude oil and the devaluation of the naira. The naira has lost over 50% of its value against the dollar in the past two years, making it more expensive to import petrol.

The high landing cost of petrol is a major concern for the Nigerian government, as it is likely to lead to inflation and economic hardship. The government is currently exploring ways to reduce the landing cost of petrol, such as increasing domestic production and reducing its reliance on imports.

In the meantime, Nigerians are advised to be prepared for a sharp increase in the price of petrol at the pump. They are also advised to conserve fuel and find alternative means of transportation whenever possible.

Impact of fuel scarcity on the Nigerian economy

Fuel scarcity has a number of negative impacts on the Nigerian economy. These impacts include:

  • Increased inflation: Fuel scarcity leads to an increase in the cost of transportation and goods and services. This is because businesses have to pass on the increased cost of fuel to their customers.
  • Reduced economic growth: Fuel scarcity disrupts economic activity and leads to a decrease in productivity. This is because businesses are unable to operate efficiently when they do not have reliable access to fuel.
  • Increased unemployment: Fuel scarcity can lead to job losses as businesses are forced to close down or reduce their operations.
  • Social unrest: Fuel scarcity can lead to social unrest as people become frustrated with the government’s inability to provide them with basic necessities.
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What can the Nigerian government do to address the fuel scarcity?

The Nigerian government can take a number of steps to address the fuel scarcity, including:

  • Increasing domestic production of petrol: The government can invest in refineries and other infrastructure to increase domestic production of petrol. This will reduce Nigeria’s reliance on imports and make the country less vulnerable to fluctuations in the global oil market.
  • Reducing the landing cost of petrol: The government can reduce the landing cost of petrol by providing subsidies to oil marketers or by reducing taxes on imported petrol.
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  • Improving the efficiency of the petroleum products distribution system: The government can improve the efficiency of the petroleum products distribution system by reducing bureaucracy and corruption. This will help to ensure that petrol is available at all filling stations across the country.

Conclusion

The fuel scarcity in Nigeria is a serious problem that is having a negative impact on the economy and the lives of ordinary Nigerians. The government needs to take urgent action to address the problem and prevent it from getting worse.

Creative response

The Nigerian government can also use the fuel scarcity as an opportunity to transition to a more sustainable energy future. The government can invest in renewable energy sources such as solar and wind power. This will reduce Nigeria’s reliance on fossil fuels and make the country more resilient to future fuel shortages.

The government can also promote the use of public transportation and electric vehicles. This will help to reduce the demand for petrol and make the country less vulnerable to fluctuations in the global oil market.

Read also: How Can Nigeria Overcome Its Economic Crisis?

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