More than 1,800 petrol stations in Nigeria’s North-East shut down yesterday in protest against an anti-smuggling operation by the Nigeria Customs Service (NCS). This move forced motorists to turn to the black market for fuel.

Dahiru Buba, Chairman of the Independent Petroleum Marketers Association (IPMAN) for Adamawa and Taraba states, told Reuters that the closures followed the NCS impounding tanker trucks and shutting down fuel stations suspected of smuggling petrol to neighboring Cameroon.

Black market fuel vendors in Cameroon, Benin, and Togo have long relied on cheap gasoline smuggled from Nigeria. This trade collapsed after Nigeria scrapped a petrol subsidy last year, but resumed after Nigeria capped prices in June 2023 despite the naira weakening.

Under “Operation Whirlwind,” Customs initially released impounded trucks after IPMAN’s protest, but subsequent seizures led to the mass closure of fuel stations. “We wrote to Nigeria Customs again, but received no response, leading to this strike,” Buba said, noting that over 1,800 outlets had shut down.

Customs spokesperson for Adamawa and Taraba, Mangsi Lazarus, confirmed the seizures were due to smuggling activities.

In Yola, Adamawa’s capital, black market traders took advantage of the shortages, selling petrol at N1,400 per liter, compared to the official pump price of N650 to N750.

Meanwhile, global oil prices edged higher, driven by strong seasonal demand, Middle East tensions, and drone attacks on Russian refineries. Brent futures for August delivery rose by 0.9% to $86.04 per barrel, while US crude gained 1.1% to $81.63 per barrel.

“The chief underlying reason behind the price strength is the growing confidence that global oil inventories will inevitably plunge during the summer in the northern hemisphere,” said Tamas Varga of oil broker PVM.

Geopolitical risks and Ukrainian drone attacks on Russian refineries further supported oil prices. The EU’s new sanctions against Russia and a weakened US dollar also contributed to the market dynamics.