The Effect Of Fuel Scarcity On Nigerian Economy: A Special Reference To Enugu Urban:

1.0 Introduction

The word “Scarcity” means when there is insufficiency of something. Since there is insufficiency of fuel it is termed as fuel scarcity.

In the past Nigerians solely depended on the exportation of agricultural product for their source of income. This continued until the discovery of the presences of the presence of oil in our country, especially in part Harcourt. This made them (Nigerians) to divert form Agriculture to the exportation of oil to other countries, which was actually fetching them much money even till this present time.

There are many subsidiary oil companies scattered all over the country but the biggest among them is in port-Harcourt and it is called the Nigerian National Petroleum Company (NNPC). It is from here that crude oil is extracted from the ground refined to get those components like fuel, kerosene and gas.

There are depots scattered all over the country like shell Port-Harcourt, NNPC Enugu, Eif oil Company, Warri Pipeline are directed towards these oil companies to facilitate distribution. Tanker drivers and other dealers will load form the depot and distribute to filling stations, then the consumers will buy form the filling stations.

Fuel supply has been moving smoothly in the country before the announcement of the budget by the head of state in January last four year 1999. it was in February 1999 that the whole issue of fuel scarcity started. This has made it difficult for the government to accomplish that which it proposed to do I the budget.

In the past, there has not been any services fuel scarcity, everything was moving smoothly, the industrialist both public and privates, does not have any problem. Economically the price of goods and services, were affordable by the people. Car owners can just go to filing station and buy fuel at a normal price of N22.00 per liter and with much ease.

Things were moving smoothly in the country and in this part f Enugu metropolis until 1994 when we had one case of fuel scarcity not until on up till this movement of this study.

Because of fuel scarcity, people are so desperate to by fuel for their business. For this reasons, whenever any information was passes concerning the presence of fuel in any filling station, car owners will go there and que -up. Some of them will have to sleep in the filling stations a day or more than two days while waiting for their turn. People or car owners when they cannot buy fuel in any filling station, are forced to buy from the black market at an exhobitant price. Some people use big gallons to buy fuel that will serve them for some days.

For the reason that there is insufficient fuel in the filling station, makes people sell fuel in ration so that everybody present will buy. The car owners who think the fuel will not reach tem will start jumping the que, thereby causing fights among themselves. Because of this reason, the filling station owners invite soldiers so that there will be peace and orderly que in the filling stations. Fuel scarcity are sometimes artificial in the sense that during the Christmas period. Filling station owners will just hoard their fuel in order to sell at a high price.

1.1 Background of Subject Matter

Just like water and air are important to the living human being for daily duties and hitch-free survival, the importance of fuel to automobile cannot be over looked. A typical situation is in the case halts because of the fact that there is shortage of fuel. The importance of fuel in this our developing and technically inclined economy is fast like the mixture of oil and salt as far as the economy forgets growth as one of its goals. Fuel is used in a variety of activities ranging from production, mobility, cooking, electricity supply, sources of foreign exchange, to mention but a few. To this extent one would accept that fuel plays a great role in the life of every citizen of the country and the country as a whole.

However, in recent times, there has been a rampant shortage in the availability of the commodity. It is on this basis that the researcher intends to evaluate the causes and effects of fuel scarcity in the Nigerian economy, but shall concentrate on Enugu urban as a case study due to time and financial constraints.

Effects of Fuel Scarcity

Fuel is a form of energy, according to Longman English Dictionary; fuel is a form of energy used for the energizing of the machine used for production. In that case, its scarcity will affect the living standard of the people in various ways.

a. It increases the cost of transportation

b. Electrical faults

c. The cost of food items and living

d. Social unrest

e. Adulteration of fuel and so on.

The effects of fuel scarcity in Enugu metropolis cannot be over emphasized for it is one of the very prayers for the entire economic attribute to move about.

During 1998 February 12, business activities in Enugu State was brought to a light because there was no fuel. In the state, vehicles were seen in long queues in the filling stations even when there is fuel at the filling station or not. Commuters were stranded in the various bus stops with no hope of motor coming to take them to their various destinations 

Consignment upon this prices of commodities skyrocketed so much beyond the reach of the buyers “News watch publisher Vol.12 November in 1996”. The perennial fuel scarcity in Enugu State has fired production companies to produce at a low capacity, with high price, since the fuel which is used as a nourishing material to the machine which is suppose to be used in production is scarce to get and when gotten the price is 300% (three hundred percent) increase more than the former price. This is why most companies’ products are costly and these tend to scare customers away from the products. Also from the statistics available transportation costs have gone up considerably, making it difficult for customers to get to their various destinations.

A journey that normally costs ten Naira (N10) a drop now costs twenty Naira (N20) to forty Naira (40) a drop, which represents a total increase of 200 percent. Conversely the daily spending of the average citizen has increased due to the sky rocketed increases in foodstuff, which was occasioned by the fuel scarcity.

Furthermore, lateness to duty or offices has been heightened as a result of lack of commuter buses and taxis to take them to their various destinations.

To this end, the effect of fuel scarcity is so great that most indigenes of Enugu State and non-indigenes of Enugu State metropolis are suffering untold hardship.