Economy
Petrol Prices Hit N2,000 Per Litre in Ogun Border Towns as Fuel Scarcity Worsens
Residents of border communities between Nigeria and Benin Republic in Ogun State are facing unprecedented fuel prices, with petrol now selling for as high as N2,000 per litre. This surge in price comes amid ongoing concerns about fuel availability in the region.
Reports indicate that only four petrol stations—Lafems Oil, Mobil Fuelling Station, Oppresso Oil and Gas, and Somolab Fuelling Station—are officially licensed by the Nigerian government to sell petrol in these areas. The limited number of authorized stations is driving prices up, with these stations reportedly selling fuel at between N1,200 and N1,300 per litre. In contrast, black market vendors are charging up to N2,000 per litre, exacerbating the situation for local residents.
The affected communities include Idiroko, Ijofin, Agosasa, Ipokia, Iwoye Ketu, Tube, Oniro, Araromi Ofo, Ilate, Ohunbo, Agada, Maahun, and Tungeji, all located within the Ipokia and Imeko Afon Local Government Areas.
The sharp increase in fuel prices has been attributed to smuggling activities and the limited number of licensed petrol stations in the region. This situation has its roots in a 2019 policy enacted by former President Muhammadu Buhari, which banned the supply of petroleum products to stations within 20km of Nigeria’s borders to curb fuel diversion to neighboring countries. Although the government later granted waivers to some stations, the number remains insufficient to meet the needs of the local population.
Speaking on the matter, Imoleayo Mawutin, Chairman of the Ipokia Local Government Youth Forum, expressed frustration over the inadequate fuel supply. He noted that the four authorized stations are unable to serve the more than 350,000 residents in the area.
“Every week, we receive a total of 180,000 litres of PMS for our local government, but much of it is diverted to Benin Republic by smugglers and black marketers. As a result, our people are forced to travel over 30km to Owode township in another local government to buy PMS. Even then, they face harassment from customs officials who often confiscate the fuel meant for domestic use,” Mawutin said.
He added that the situation has severely impacted local businesses, hospitals, and farmers, many of whom have been forced to shut down. Those who continue to operate are left with no choice but to purchase fuel at exorbitant prices from black market sources.
Mawutin called on the government to lift the ban on the sale of petrol in border communities and authorize more filling stations to operate in the area to alleviate the ongoing crisis.
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