Fuel Price Surge Forces 10,000 Oil Dealers to Consider Shutdown

In a shocking development for Nigeria’s fuel industry, nearly 10,000 oil dealers are on the brink of closing their businesses due to a dramatic decline in fuel consumption and soaring prices.

This alarming trend has emerged following the removal of fuel subsidies in May 2023, which saw petrol prices rise from N175 per litre to over N1,000 by October 2024.

Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority reveals a staggering 92% drop in daily fuel consumption, plummeting from 60 million litres in May 2023 to just 4.5 million litres in August 2024.

Compounding the crisis, only 16 of Nigeria’s 36 states received fuel supplies from the Nigerian National Petroleum Company Limited (NNPCL) in August, exacerbating the ongoing shortages.

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Dr. Joseph Obele, National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), expressed deep concern at a recent association meeting, stating, “About 10,000 of our members would quit business in the next 45 days because their trading capital has been severely affected.”

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The fallout is expected to impact approximately one million workers in the sector, raising fears of widespread job losses.

The financial strain on dealers is evident, with the cost of a truckload of petrol skyrocketing from N7 million to N47 million in just 16 months.

Obele emphasized the urgency of the situation, noting that the association has formally requested a grant of N100 billion from President Bola Tinubu to avert mass closures.