Foreign Exchange Crisis: Impending Fuel Shortage As Depots Run Out Of Stock And Filling Stations Cease Operations

They stated that petroleum product depots and certain filling stations are experiencing shortages due to the fluctuating foreign exchange rates…CONTINUE READING....KINDLY READ THE FULL STORY HERE▶

During the National Executive Council meeting in Abuja on Thursday, Benneth Korie, the National President of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), emphasized that many depots are currently facing shortages or are completely out of stock.

He further explained that the situation is becoming increasingly challenging for the sector, leading to a growing number of filling stations shutting down. If prompt action is not taken, there could be an impending fuel scarcity in the coming months.

Korie noted that depot owners are severely impacted by the rising cost of crude oil and exchange rate fluctuations, making it difficult for them to secure bank loans due to high interest rates.

Banks are hesitant to provide funding to stakeholders because of the instability and rapid fluctuations in foreign exchange rates, as well as the high cost of the dollar. The shortage of petroleum products in many depots is evident and confirmed.

He added, “The most affected are filling stations, whose owners are struggling to secure funds for purchasing products for their retail outlets.

Both independent and major marketers are facing significant challenges. Currently, filling stations are closing down in large numbers daily, and dealers are facing financial difficulties, with many on the brink of bankruptcy due to their inability to secure funds for ordering products for their stations.”