The price hike in Ogun state has been largely attributed to the smuggling of fuel across the border, where it is sold at higher prices in the Benin Republic.
Ogun state, Nigeria – Residents of border communities between Nigeria and Benin Republic in Ogun State are grappling with soaring petrol prices, which have now reached as high as ₦2,000 per litre in some areas. The sharp increase in fuel costs is severely impacting daily life in towns such as Idiroko, Ijofin, Agosasa, Ipokia, Iwoye Ketu, Tube, Oniro, Araromi Ofo, Ilate, Ohunbo, Agada, Maahun, and Tungeji, located across the Ipokia and Imeko Afon Local Government Areas.
According to The Punch, Investigations revealed that only four filling stations—Olafems Oil, Mobil Fueling Station, Oppresso Oil and Gas, and Somolab Fueling Station—are authorized by the Federal Government to sell petrol in these border communities. While these stations sell petrol at prices ranging between ₦1,200 and ₦1,300 per litre, black market vendors are charging between ₦1,500 and ₦2,000 per litre.
The price hike has been largely attributed to the smuggling of fuel across the border, where it is sold at higher prices in the Benin Republic. In 2019, the administration of former President Muhammadu Buhari banned the supply of petroleum products to petrol stations within 20 kilometers of the country’s borders to curb the diversion of fuel to neighboring countries. Although some stations were later granted waivers to sell fuel in these border communities, the number is insufficient to meet the needs of the population.
Many residents now rely on the black market for their fuel supply, which has become essential for both daily life and business activities. Some locals have accused authorized filling stations of prioritizing sales to smugglers, who then resell the fuel at inflated prices in the Benin Republic.
Ismael Balogun, a community leader in Ipokia, expressed his frustration, stating that the high fuel prices have crippled economic activities in the border regions. “The few authorized petrol stations hardly sell fuel to the people. They prefer to sell to smugglers who buy in large quantities and resell to the Benin Republic. The situation has brought untold hardship to the people. Transportation costs are unbearable, and on top of that, operatives of the Nigeria Customs Service keep harassing and intimidating our people,” Balogun said.
Imoleayo Mawutin, Chairman of the Ipokia Local Government Youth Forum, also lamented the inadequacy of only four petrol stations serving a population of over 350,000 people. He called on the government to lift the ban on fuel sales in the area and allow more filling stations to operate.
“Every week, we receive a total supply of 180,000 litres of PMS in our local government, but it all ends up in the Benin Republic, in the hands of racketeers and black market operators. Our people now have to travel over 30 kilometers to Owode township in another local government to buy PMS, where customs still harass and mistreat them while confiscating products meant for domestic consumption. These inhumane acts have forced most of our hospitals, small and medium enterprises, and farmers out of operation, and those who remain are forced to buy PMS from black marketers at exorbitant prices ranging from ₦1,500 to ₦2,000 per litre,” Mawutin said.
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