Tuesday, May 24th, 2022

Fuel scarcity may persist in Nigeria due to Russia-Ukraine war.

Fuel scarcity may persist in Nigeria due to Russia-Ukraine war.

The ongoing Russian invasion in Ukraine may further compound the over three-week fuel scarcity in Nigeria. This as the refined products coming into the country from the warring region and its contiguous areas are likely to face delays. Incidentally, traders who supply Nigeria with refined products might have to pause due to a shortage in

The ongoing Russian invasion in Ukraine may further compound the over three-week fuel scarcity in Nigeria. This as the refined products coming into the country from the warring region and its contiguous areas are likely to face delays.

Incidentally, traders who supply Nigeria with refined products might have to pause due to a shortage in supply of crude oil cargoes from the Nigerian National Company Limited. This will exacerbate the fuel scarcity in Nigeria.

Russia-Ukraine crisis lingers fuel scarcity.

The NNPC brings refined fuel into the country in partnership with some contractors through its Direct Sale Direct Purchase arrangement.  The arrangement involves the contractors receiving crude oil from the NNPC and in return supplying the national oil company with refined products worth the volume of crude received.

However, due to low oil production, the NNPC now has a shortage of about 17 cargoes in its DSDP obligation. Without a doubt, this could prolong fuel scarcity in the country.

A source stated, “What we face now could be described as a perfect storm, which is when many things go wrong at the same time. We have a fundamental problem, but that problem happens at a time when other things happen and so it aggravates everything.

Now, Russia has attacked Ukraine. What is the impact of Russia’s attack on Ukraine for Nigeria? Russia is an oil-producing country for Ukraine. Our refined products come from that part of that world, not only Western Europe.

So, the price has gone up because our refined products come from that part of the world, and disturbances such as the one happening there will impact supply one way or the other.” The source added.

It must be noted that Nigeria needs to be self-sustaining in terms of shipping and technology in order not to be thrown out of balance if those countries it depends on impose new sanctions and development.

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