Nigeria Transport Costs Jump of Fuel Supply Crisis
By Bashir Olanrewaju
Road transportation costs have jumped in Nigeria’s main cities as a supply disruption caused by adulterated fuel supplies persist.
Several petrol cargoes shipped into Nigeria in the last week of January had unusual amounts of methanol, an additive that is not included in the specifications for supplies to the country.
The Nigerian National Petroleum Ltd, which accounts for almost all of the country’s fuel imports, blamed companies including its subsidiary Duke Oil, MRS, Britannica U and Oando for offloading the tainted cargoes.
Mele Kyari, the group managing director of NNPC, said the affected cargoes have been withdrawn and replacements ordered to bridge the gap in supplies.
Meanwhile, fuel queues have persisted in the economic hub of Lagos and the capital, Abuja, resulting in higher transport costs for residents. The cost of regular commutes on Uber and Bolt have more than doubled for most destinations.
“I usually take a Bolt to the office every morning for about 900 naira,” said Mayowa Adefila, an Abuja-based banker. “In recent days I’ve been paying an average of 2,000 naira.”
With Nigeria dependent of road transportation to move most goods, price pressures are expected to reach other goods and services, said economists surveyed by Nairaweb.ng.