Oil and Gas

Fuel importation drops post elections, as scarcity bites harder

The rate of importation of Premium Motor Spirit (PMS), otherwise called petrol, to West Africa from Europe has slowed down as demand dropped after Nigeria’s presidential election.

The effect has been mostly felt in the Nigeria’s capital, Abuja, and its environs as fuel supply distribution dropped, hence, leaving many filling stations dry.

Oil traders booked tankers to haul an average of 514,000 metric tonnes of fuels a week to West Africa this year, according to lists of ship charters compiled by Bloomberg.

That’s about 70 percent more than a year earlier and about a quarter of Europe’s exports. Shipments of petrol peaked about three weeks before the March 28 vote.

“The surge will slow because it was caused, in part, by Nigeria’s government seeking to avoid fuel shortages before the election,” said Ehsan Ul-Haq, an analyst at KBC Energy Economics in London.

Source: Daily Trust, Bloomberg

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