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Viewing cable 07LAGOS92, FUEL CRISIS IMMOBILIZES SECTIONS OF THE SOUTHWEST

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Reference ID Created Released Classification Origin
07LAGOS92 2007-02-08 07:03 2011-08-25 00:00 UNCLASSIFIED Consulate Lagos
VZCZCXRO1455
PP RUEHMA RUEHPA
DE RUEHOS #0092/01 0390703
ZNR UUUUU ZZH
P 080703Z FEB 07
FM AMCONSUL LAGOS
TO RUEHZK/ECOWAS COLLECTIVE PRIORITY
RUEHUJA/AMEMBASSY ABUJA PRIORITY 8310
RUEHC/SECSTATE WASHDC PRIORITY 8482
INFO RUEHWR/AMEMBASSY WARSAW 0123
RUEHCD/AMCONSUL CIUDAD JUAREZ 0103
RUEHIT/AMCONSUL ISTANBUL 0110
RUEHSO/AMCONSUL SAO PAULO 0121
RUFOADA/JAC MOLESWORTH AFB UK
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
UNCLAS SECTION 01 OF 02 LAGOS 000092 
 
SIPDIS 
 
SIPDIS 
 
DOE FOR GPERSON, CGAY 
TREASURY FOR ASEVERENS, SRENENDER, DFIELDS 
COMMERCE FOR KBURRESS 
STATE PASS USTR FOR ASST USTR FLISER 
STATE PASS TRANSPORTATION FOR MARAD 
STATE PASS OPIC FOR ZHAN AND MSTUCKART 
STATE PASS TDA FOR NCABOT 
STATE PASS EXIM FOR JRICHTER 
STATE PASS USAID FOR GWEYNAND AND SLAWAETZ 
WARSAW FOR LISA PIASCIK 
CIUDAD JUAREZ FOR DONNA BLAIR 
ISTANBUL FOR TASHAWNA SMITH 
SAO PAOLO FOR ANDREW WITHERSPOON 
 
E.O. 12958: N/A 
TAGS: EPET ENERG ASEC PTER NI
SUBJECT: FUEL CRISIS IMMOBILIZES SECTIONS OF THE SOUTHWEST 
 
REF: LAGOS 54 
 
LAGOS 00000092  001.2 OF 002 
 
 
1.  (SBU) Summary: A visit by Poloff to the Southwest showed 
traffic sharply reduced and long fuel queues in every major 
city.  With suppliers ordered to give priority to Lagos and 
Abuja, other cities had to grapple with not knowing when more 
fuel was coming.  One distributor admitted to hoarding fuel 
until paid the subsidy owed by the Petroleum Support Fund. 
Even as commerce slowly crept back to normal, high prices 
remained and long-distance commerce continued to be severely 
affected.  End summary. 
 
-------------------------------------------- 
Traffic Drastically Reduced in the Southwest 
-------------------------------------------- 
 
2.  (U) During late January visits by Poloff to the 
Southwest, traffic in most places was light.  The fuel 
shortage has drastically reduced long-distance travel on the 
normally busy Lagos-Ibadan-Akure highway.  Highway vendors 
found little business, and the police had shorter than normal 
queues at their checkpoints.  In Ibadan and outside Lagos, 
trucks without fuel remained parked along the highway.  While 
the official government price remained posted at 65 
naira/liter or approximately $1.92/gallon, the black market 
price motorists paid was closer to 120 naira/liter or 
$3.54/gallon. 
 
---------------------------------- 
Ibadan at a Standstill as Supplies 
Go To Lagos and Abuja 
---------------------------------- 
 
3.  (U) Poloff arrived in Ibadan to observe streets virtually 
empty.  Traffic more resembled a Sunday morning than a normal 
weekday.  The traffic was light enough to cut travel times in 
sprawling Ibadan by half what Poloff has experienced on a 
normal business day.  Ibadan's largest market, Dugbe, was 
virtually shut down, with only a handful of vendors at their 
stands.  Retail stores had empty parking lots.  Mostly 
everyone was searching for fuel.  The queues at the petrol 
stations were enormous.  Most of the stations were not even 
open but motorists waited in wishful anticipation of the 
possible availability of fuel. 
 
4.  (SBU) S.A. Oladiti, a fuel distributor who owns four 
stations in Ibadan, told Poloff that the crisis in Ibadan 
began before the Christmas holiday and had virtually shut the 
city down.  Oladiti blamed government inaction and vandalism. 
 Vandalism had wrecked the major pipelines to Lagos, Oladiti 
commented, putting three of the four pipelines out of 
commission.  In the absence of the payment of arrears owed 
him by the Petroleum Support Fund (PSF), Oladiti planned to 
keep his stations closed to avoid selling at the regulation 
price. 
 
5.  (SBU) Perhaps to quell potential unrest in the country's 
two most important cities, Oladiti told Poloff Nigeria 
National Petroleum Company (NNPC) had ordered suppliers to 
give priority to Lagos and Abuja by diverting fuel from other 
locations.  Oladiti did not foresee the government solving 
the crisis unless it can end the vandalism. 
 
--------------------------------------------- -- 
Sections of the Southwest Reach Normal Activity 
--------------------------------------------- -- 
 
LAGOS 00000092  002.2 OF 002 
 
 
 
6.  (U) Visits by Poloff on January 22-24 to the state 
capitals of Lagos, Ekiti, Osun, and Ondo States revealed an 
increased amount of road traffic.  Still long fuel queues 
remained.  Lagos traffic appeared to be coming back to normal 
after the previous week.  Ado-Ekiti and Oshogbo had 
near-normal levels of traffic compared to Poloff's previous 
visit to the cities in September 2006.  Akure, capital of 
oil-producing Ondo State, appeared to have the longest queues 
and very light activity at its main markets.  Long-distance 
traffic remained very light, with most trucks parked in Lagos 
or Ibadan.  The black market price motorists paid remained 
120 naira/liter or $3.54/gallon. 
 
------- 
Comment 
------- 
 
7.  (SBU) In none of the states visited did Poloff hear of 
social disturbances resulting from the prolonged shortages. 
People have gotten used to fuel scarcity, particularly at the 
beginning of the year.  Instead of anger boiling over, the 
majority response was to attempt to cope with the hardship of 
higher costs.  The black market price had not fallen from 120 
naira per liter, but commerce in parts of the Southwest 
appeared to be moving back to normal.  Nevertheless the 
shortages have had an appreciable impact on the local 
economy.  End comment. 
 
BROWNE