Tuesday 26 May 2015

Petrol distribution resumes but disruption persists

Fuel supplies slowly resumed in Nigeria on Tuesday after a strike by fuel marketers was called off, but long queues at petrol stations and interruptions to businesses persisted in Africa's biggest economy and oil producer.

The dispute, which ended on Monday, brought much of Nigeria to a standstill as private generators that produce most of the electricity for the nation's 170 million inhabitants ran out of fuel, days before the inauguration of Muhammadu Buhari as the new president on May 29.

Nigeria subsidizes gasoline and must import the bulk of the 40 million litres a day that it consumes owing to a neglected refining system. A dilapidated power grid means businesses and households depend on diesel for electricity.

Fuel importers said they were owed money by the government and shut depots to press their case.
Besides airlines, which could not obtain aviation fuel, phone companies such as MTN Group and domestic banks had ground to a halt for lack of electricity.

MTN said on Tuesday that its Nigerian services continued to be hampered despite the end of the fuel strike.
"Diesel is still not easily available at this time...It is likely to take some time for normality to be restored," Funmilayo Onajide, a spokeswoman for the company, said.

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