Mele Kyari, the Group Managing Director of the Nigerian National Petroleum Corporation Limited (NNPCL), has explained the resurgence of fuel queues at filling stations. Last week, queues began to appear, and there were speculations of an impending fuel price increase,Daily Trust reports.
However, when addressing state house correspondents on Monday, Kyari attributed this development to the return of road blockades. Drivers had to take longer routes to avoid these blockades, resulting in delays in the supply chain. Kyari emphasized that the supply of petrol remained ample, and the federal government was actively working to ensure a stable supply of foreign exchange (FX) to support the current I&E (Investors and Exporters) window, which was hovering around N770.
He further explained that some fuel stations were reducing their prices by two or three Naira, leading customers to flock to those stations offering lower prices. This competition among marketers sometimes created panic among consumers who were unaware of the reasons behind the price fluctuations.
Kyari elaborated: “We have observed isolated instances of minor queues in a few states. These can be linked to roadblocks obstructing the movement of petroleum products from southern depots to the northern part of the country, requiring longer routes and causing delays. However, these issues have been addressed, and we do not anticipate any further problems. Additionally, due to the full deregulation in this sector, fuel marketers are now competing among themselves.”
Kyari reassured the public, saying, “There is no need for concern. Our petrol supply is robust, with over 1.4 billion liters of product available both by land and sea. Delivery of these products to land locations is also without any issues. We are actively engaging with marketers to address any challenges, in collaboration with other government agencies, especially regarding access to foreign exchange.”
He highlighted the government’s efforts to stabilize the FX market, aiming for a balanced I&E window at around 770 Naira. Kyari expressed optimism that this would lead to a stable FX market and fuel prices that align with the prices of other commodities, ushering in a positive economic transformation for the country.