WHY DO WE SUFFER FUEL SCARCITY IN
NIGERIA?

1. We do not have enough refineries to
satisfy our domestic need, so we depend
on fuel importation

2. Fuel is bought at the international
market with US dollars and importers need
USD to buy and import fuel

3. There is variability up to N121 bewteen
the official USD exchange rate and the
parallel market rate in Nigeria.

4. The government determines the price
for fuel because the CBN is the only source
of US Dollars for Marketers who import
fuel.
5. If marketers source for dollars
themselves, they cannot sell the product at
the government price because of the N121
difference.

6. When the CBN gives US dollars to
importers to buy fuel and import, they opt
to selling the US dollars in the parallel
market since they will make more profit,
say about 50 times more than buying fuel
and importing.

7. Most of the few marketers and dealers
who use the dollars they got from CBN to
buy fuel and import, divert the fuel to
neighbouring countries like Chad and Benin
Republic etc because fuel costs more in
these countries since their Petroleum
Market is free, and they will sell at a higher
price and make more gains.

8. The CBN as a result of over 60% decrease
in the price of crude leading to a reduced
foreign reserve cannot afford to give
enough dollars to marketers and dealers to
import enough quantity of fuel for
domestic consumption in the midst of all
the leakages

9. These factors combined with a few
others always lead to a shortage in the
quantity of fuel that will satisfy Nigerian
domestic consumption.

WHAT HAS THE MINISTRY OF PETROLEUM
DONE?

1. Stopped the CBN from giving USD to
marketers and dealers and gave them
freedom to source for foreign exchange in
the parallel market

2. Allowed the pump price of fuel to reflect
the international price of fuel using the
foreign exchange at the parallel market
3. Given all marketers and dealers the right
to buy and import fuel while sourcing for
foreign exchange from the parallel market

WHAT WILL BE THE IMPACT OF THIS?

1. Marketers and dealers can no longer
collect dollars from CBN and sell at the
parallel market instead of importing fuel
and then causing fuel shortage

2. Marketers and dealers can no longer
divert fuel to Chad, Benin and other
neighbouring countries since they will not
make extra profit in doing so

3. Everyone can now buy fuel and import.
There are no more cabals in the Petroleum
industry. Anyone can join and do business.
4. More fuel will be brought to Nigeria and
there will be competition among marketers
that fuel stations will be begging and
giving incentives to customers to buy their
fuel

5. Competition will drive down the price of
fuel as seen in the case of diesel.

6. Government will use its
resources and time to develop
infrastructure.

This is the choice we have to make now
that we have a Government that we can
entrust our resources to and go to sleep.
President Muhammadu Buhari has shown a
high level of uprightness, prudence,
determination to kill corruption and
develop Nigeria though he has dissapoint us a little
but Let us support him...


Lasticlacla， mynd44 please do the needful

wether u've spilled trash or yes, it's like u've made small sense..

To me, the first misstep is that we have not factored the electricity challenge when estimating our hydrocarbon needs. Remove generators ofwhatever capacity and we shall be okay.So all efforts must be made to stabilise electricity to homes and industry using a combination of gas, coal and hydro.