The ongoing conflict between Russia and Ukraine may extend the nearly three-week scarcity of Premium Motor Spirit, also known as petrol, in Nigeria, as the majority of refined products entering the country from the warring zone and its bordering areas are expected to be delayed.
On Sunday, it was also reported that traders supplying Nigeria with refined petroleum products may take a break due to a shortage of crude oil cargoes from the Nigerian National Petroleum Company Limited.
Through its Direct Sale Direct Purchase scheme, the NNPC imports refined fuel into Nigeria through contractors or traders.
The oil corporation sends crude oil to its trading partners, who then supply the NNPC with refined goods equal to the level of crude received by the national oil company, according to the arrangement.
However, reliable sources within the oil company and among traders said on Sunday that due to low oil output, Nigeria’s DSDP commitment was around 17 cargoes short.
They claimed that unless something radical was done, such as complete deregulation of the downstream oil sector, the gasoline scarcity issue in the United States would worsen.
They also stated that the Russia-Ukraine conflict could exacerbate the petrol supply problem in Nigeria by preventing products from leaving refineries in the region on time.
Nigeria now imports refined petroleum products due to the fact that its refineries remain idle.
“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 that other things happened and so it aggravates everything,” an oil trader with the NNPC, who pleaded not to be named due to the sensitive nature of the matter, stated.
The source added, “Now, Russia has attacked Ukraine. What is the impact of Russia’s attack of Ukraine on Nigeria? Russia is an oil-producing country, for Ukraine, our refined products come from that part of the 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.”
