Fuel Supply Anxiety Grows in Nigeria’s Downstream Sector

LAGOS — Fresh anxieties are spreading across Nigeria’s downstream petroleum sector. Marketers, depot owners, and logistics operators are raising new concerns about fuel supply security. Industry insiders say distribution disruptions could become a problem if underlying issues are not addressed quickly.

The Petroleum Products Retail Outlets Owners Association of Nigeria said on Wednesday that supply from some depots has become inconsistent. Members reported longer waiting times for fuel loading at terminals across Lagos and Port Harcourt. Some marketers said pricing uncertainties are adding to distribution stress.

A depot operator who spoke to journalists said the situation is not yet a crisis but deserves urgent attention. “We are seeing more disruptions than usual. If this continues, retail stations could start running dry in some areas within weeks,” the operator warned.

The Dangote Petroleum Refinery, which now supplies a significant share of Nigeria’s petrol, said its production is running at near capacity. The refinery said it is not aware of any supply chain issues on its end. It pointed to distribution logistics as the more likely source of market stress.

Regulatory Response

The Nigerian Midstream and Downstream Petroleum Regulatory Authority said it is monitoring the situation closely. The agency said it has not received formal reports of supply failure at any retail level. However, it said field officers have been deployed to conduct spot checks at depots and filling stations across the country.

Furthermore, the NMDPRA said it will act swiftly against any operator found to be hoarding products or artificially creating scarcity to drive up prices. It warned that product diversion is a criminal offence under the Petroleum Industry Act.

In addition, the NNPC said its strategic petroleum reserves are at adequate levels. Officials said there is no structural supply deficit. They attributed the reported disruptions to logistical bottlenecks that are being managed on a case-by-case basis.

Consumer Impact

Nigerians are highly sensitive to fuel supply disruptions. Long queues at petrol stations trigger anxiety and anger, given the country’s painful history of extended fuel scarcity. Even a short disruption can cause significant economic damage, including rising transportation costs and higher food prices.

Transportation workers in Lagos said some filling stations along key routes were experiencing supply delays on Wednesday morning. They called on the government to ensure uninterrupted supply ahead of the long-distance travel period typically associated with major public holidays.

The Federal Ministry of Petroleum has not yet made a formal statement on the downstream sector concerns. However, ministry sources said a meeting with major marketers and depot operators is being scheduled for later this week to assess the situation and agree on corrective measures.