VAIDS

Monday, May 25, 2015

Fuel Scarcity Bites Harder, a litre now N400

This is no easy time for Nigerians following the endemic fuel shortages that have crippled the nation because of a long-running row over controversial subsidy payments between the government and oil marketers.

Fuel scarcity bites harder, a litre now N400

In the last one month, petroleum products particularly petrol has remained scarce, with the price now gone above the reach of majority of the citizens.

Incidentally, the economy is heavily dependent on fuel as electricity, another essential commodity that aids the growth of the economy, is in its lowest ebb, below 3,000 megawatts for a country with a population of about 170 million people.

It is can confirm that Nigerians now source for petrol from neighboring Benin Republic. Ironically, Benin does not produce oil, but Nigeria ranks seventh largest exporter of crude oil, and it is a member of the Organisation of Petroleum Exporting Countries (OPEC), a global oil cartel where Nigeria’s petroleum minister currently serves as president.

Nigeria owns four oil refineries where billions of naira is regularly sunk, but  non currently produces to installed capacity, forcing the country to depend on imported fuel which government subsidises to make it affordable to the citizens. Unfortunately, however, despite claims of billions of naira voted annually to subsidise fuel imported into the country, Nigerians still buy fuel at far over official price of N87 per litre. With major marketers importing products claiming the Federal Government owes them N200 billion from subsidy, and stopping, resulting in scarcity, petrol is sold for N400 per litre.
With scarcity becoming more severe with almost all filling stations running out of the product, black marketers now source petrol from Cotonou in Benin Republic, which they sell to motorists and other consumers at N400 or N500 per litre.

On Sunday, air travel was seriously impaired as domestic airlines shut many of their counters to travellers who barely found their ways to the airports as a result of the scarcity of Jet-A1 (aviation fuel) in the country.
Scores of travellers that had purchased advanced tickets and those wanting to buy current tickets were disappointed to meet almost empty counters at most of the ticketing units of the airlines on Sunday.

Arik Air, the largest domestic carrier, said it would only operate about 30 to 40 percent of its flights, adding that the scarcity was taking a heavy toll on its operations.
Ola Banji, the airline’s spokesman, said they had limited fuel to operate with. This was after the airline completely shut down its operations on Saturday as a result of the situation.Its Lagos to London flight had to go through Kano to fuel before flying to London, because the airline could not source about 120,000 litres of Jet-A1 needed for the aircraft in Lagos.
Airlines like Aero, Medview, Air Peace, Dana and Firstnation cut their flights by almost 80 percent, as passengers scramble for flights.

Aero, in a statement signed by Simon Tumba, its spokesperson, said due to the scarcity of aviation fuel in the country, the airline would not be able to operate over 80 percent of her domestic flights as scheduled, adding that in the last few weeks the supply of aviation fuel had been very irregular, which had compelled the airline to cancel some flights.

“We apologise to our esteemed customers for the inconveniences they may have been experiencing due to flight delays and cancellations caused by the scarcity of aviation fuel. We urge our customers to always check our website or contact the call centre agent to affirm if their scheduled flight will operate. Aero regrets any inconvenience the changes will cause. All measures are being made to ameliorate the situation and revert to her regular flight schedule. We hope that the situation improves very soon”, he summed.
Aviation fuel accounts for 40 percent of operations of a domestic airline and its availability or scarcity could make or ground the industry.

Meanwhile, foreign airlines operating into the country, though delay flights for several hours, prefer to come in with full tanks and refuel at neigbhouring countries, delaying flights more than necessary.
Nigeria’s biggest mobile phone operator, MTN, has warned that its network faces shutdown due to fuel shortages that have crippled the nation.

The company, the biggest subsidiary of the South Africa-based MTN Group, said it needed a “significant quantity of diesel in the very near future to prevent a shutdown of services across Nigeria”.

“If diesel supplies are not received within the next 24 hours the network will be seriously degraded and customers will feel the impact,” it added on its Twitter account @MTNNG on Saturday evening.
On Friday, the Ministry of Power said electricity production was at an all-time low of 1,327 megawatts.

No comments:

Post a Comment

Share

Enter your Email Below To Get Quality Updates Directly Into Your Inbox FREE !!<|p>

Widget By

VAIDS

FORD FIGO