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Photo shows a man carrying jerrycans to search for fuel in Lagos
Petrol fuel derived from petroleum is scarce in Nigeria. Apart from being costly, it is also not found in the filling station.
There are many varied products from petroleum. When petroleum is mentioned, it evokes thoughts of fuels such as petrol, kerosene, diesel and engine oil. Of these products, engine oil, it seems, is never lacking for consumers to buy. But petrol, kerosene and diesel are often scarce. Scarcity is often experienced during the Christmas season of December. This is a holiday season because of the Christmas festival, when there are increased travels.
People travel for various reasons. Some go home during the end of the year to visit their relatives and friends at home. Perhaps, because of the increase in travels and transportation, more petrol and diesel fuels are needed. Petrol scarcity used to be experienced also because some sellers, the filling stations, refuse to sell and close their stations, hoarding the commodity and creating artificial scarcity, with the result that when they open, they sell at inflated prices.
This phenomenon has become a common experience in Nigeria. Added to the sad situation, is the problem of satisfying the demands of workers in the petroleum industry who sometimes go on strike, producing scarcity of these products. It is expected that the government is supposed to know the needs of these workers based on the terms under which they were employed and the economic realities. These should be solved before problems could erupt knowing full well that that the whole population will be affected.
Nigeria is producer of petroleum. Other producers include the United States of America, Saudi Arabia, Kuwait, Brazil, Iran and others. Since Nigeria is a major producer of petroleum, it is expected that petroleum products will be cheap and easily available. Petroleum refineries are situated at Port-Harcourt and Kaduna, but these were said to be broken down. Nigeria is a country where infrastructures are provided with little thought about setting aside funds for maintenance.
Hence, either petroleum refineries are said to be not working or they are said to be working at low capacity; Iron and steel production doesn’t work; Major highways are broken down and remain in deplorable conditions. Even without the benefit of going to study management in the higher institutions, it should be a hind sight that machineries installed with celebrations will be needing to be serviced and worn out parts replaced with spare parts. This should be done as soon possible since redundant machines will rust and degenerate further.
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Inflation in the country has added to the problems of petroleum fuel scarcity. Because the purchasing power of the Naira continues to decline, the price of commodities continues to increase in the market. Money derived from selling fuel continues have less value as it can purchase fewer commodities. The government, therefore, often pronounces increases in the price of fuel. There should be a way of forestalling changes in the value of the Nigerian currency, the Naira.
When increases in the price of fuel are announced, what comes to the mind of the common Nigerian is that the leaders have continued to divert the hard labour of the masses to their private accounts. It may not appear, especially at first, whether the present value of money is commensurate with the selling price of fuel. Stability in the value of the Naira should mean stability in the price of fuel.
Sometimes, the argument is that the government has reduced fuel subsidy. But fuel subsidy is put in place to ease matters for the citizenry. Because of concern and consideration for the people, former governments decided that since Nigeria is an exporter of petroleum, money derived from same product should be used to pay for a part of the selling price of fuel, thereby making it cheaper for the masses.
Bear in mind that tribunals and courts have found some former government officials guilty of diverting public fund into private accounts. It is therefore reasonable to conclude that justifiable availability of money for government expenditures should come when government leaders use public fund for just purposes and not from removal of fuel subsidy. Who knows whether the subsidy removed will end up in the pockets and accounts of corrupt leaders.
Increases in fuel price have a spiral effect. Transporters will increase money paid for fares since they will buy fuels at increased prices. Costs of living will increase since marketers will add costs to their products since they pay higher on transportation. Government workers will agitate for increased salaries and so on.
Hence, increase in fuel price is self-defeating. It leads to a further decline in the purchasing power of the Naira. Stability in the purchasing power of a nation’s currency will be expected to make the country economically wealthy. It will also make the common man, the generality of Nigerians economically wealthier. It will make economic activities orderly and planning can be achieved.
From Ephraim Elombah
