No jerrycan policy: Black market still flourishing as petrol stations shut out households, businesses

As fuel scarcity tightens its grip on Nigeria, small businesses and households are bearing the brunt of the crisis.

The ongoing shortage has forced many to scramble for alternatives to keep their operations and homes running. However, a growing frustration is mounting among legitimate users who rely on petrol to power their generators as they find themselves squeezed out by black marketers who seem to have a steady supply of fuel.

With the scarcity showing no signs of abating, the sight of long queues at filling stations has become a daily reality for Nigerians.

But for many, the situation is even more dire—filling stations are increasingly refusing to sell petrol in jerrycans, citing policies aimed at curbing black market activities.

On several occasions, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had warned retailers from selling petrol in jerrycan to checkmate black marketers and illegal storage of the product.

Read also: Research Insight: Is the petrol black market debacle the new PoS terminal phenomenon?

This leaves individuals and small businesses in a difficult position, as they rely heavily on petrol to power their generators amid the erratic electricity supply that plagues much of the country.

“The power supply in my area is terrible,” lamented Chike Obi, a small business owner in the Igando area of Lagos who runs a barbershop.

“I depend on my generator to run my business, but getting petrol has become nearly impossible. I’ve been to several stations, and they won’t sell to me in a jerrycan. How am I supposed to keep my business running?”

Obi’s frustrations are shared by many. Families who rely on petrol generators for basic needs like lighting and refrigeration are equally distressed. Without a steady power supply and limited access to petrol, their lives have been thrown into chaos.

Black market booms

While legitimate users struggle, black marketers are flourishing. These vendors, who operate openly on the streets, sell petrol at exorbitant prices, sometimes more than double the official rate. The question on everyone’s mind is: how are these black marketers able to obtain such large quantities of petrol when filling stations refuse to sell in jerrycans?

Allegations have surfaced that some filling stations are deliberately withholding fuel during regular hours, only to sell it at night to black marketers at exorbitant prices.

“I don’t understand how they do it,” said Amina Hassan, a Lagos resident. “Everywhere I go, they tell me they can’t sell in a jerrycan. But just down the road, there are people selling gallons of petrol at crazy prices. It’s not fair.”

The policy against selling petrol in jerrycans was originally put in place to curb the activities of black marketers, but it seems to have backfired, leaving law-abiding citizens in a difficult situation.

While the intention behind the policy is understandable, its implementation has had unintended consequences, exacerbating the suffering of ordinary Nigerians.

Read also: Black market booms as petrol stations go nocturnal, shut out motorists

“NNPC station close to me sells for N568/litre but not for jerrycan,” a middle-aged woman who sells frozen foods at Igando said. “I have to buy at N1000/litre at the black market. I have no option because the power supply is not enough to sustain the fish, and chickens in my freezer.”

“The policy was meant to protect us from exploitation, but now it’s doing the opposite,” said Adewale Fatai, a generator repairman.

“People can’t get fuel to power their generators, and the black marketers are the ones benefiting. I now take my generator tank to the filling station before they can sell it to me.”

“I’ve spent hours at filling stations trying to get just a few liters of petrol,” said Bukola, a mother of three. “The little power we have is not enough to keep the fridge running, and food is spoiling. But I can’t afford the black market prices, so what choice do I have?”

In the meantime, the “jerrycan economy” continues to thrive, fueled by the desperation of those who have no other option. As long as the underlying issues of fuel distribution and power supply remain unresolved, the cycle of scarcity, black market profiteering, and public suffering is likely to continue.