US embassy cable - 03ABUJA1762

UNCLAS ABUJA 001762 
 
SIPDIS 
 
 
SENSITIVE 
 
 
E.O. 12958: N/A 
TAGS: PGOV, EPET, PINS, ELAB, NI 
SUBJECT: GAS PRICES THE MORNING AFTER 
 
REF: A. LAGOS 2090 
     B. ABUJA 1737 
     C. ABUJA 1735 
 
 
SENSITIVE BUT UNCLASSIFIED, NOT FOR PUBLICATION ON THE 
INTERNET OR INTRANET. 
 
 
1. (SBU) Touring Abuja city, the Abuja Federal Capital 
Territory, and neighboring state Niger on October 10, it is 
clear the end of the proposed October 9 strike had an effect 
on the gasoline retail market, but not what was agreed (Refs 
A and B).  Virtually all Abuja city gasoline stations were 
open except ExxonMobil outlets.  All of those that were open 
-- independents and majors -- were charging well above 34 
naira per liter, except ChevronTexaco outlets were charging 
34 naira per liter plus a fill-up fee of 100 naira.  In Abuja 
city Agip was selling at 41.5 naira, Total at 36.9 naira. 
PolCouns asked one Mobil station manager why her station was 
not selling gasoline when there were long lines at the 
independent station next door selling at 38 naira and at the 
Total station just up the street.  She answered that 
ExxonMobil would be delivering to her station that evening 
and she would be selling for 37-38 naira per liter. 
 
 
2. (SBU) There were long lines of motorists at every station. 
 Nigerians on radio talk shows said they were buying up ahead 
of what they thought was a certain rise in gasoline prices 
next week, and people PolCouns talked to in some lines said 
they were buying while gasoline was available.  One FM radio 
talk show host asked why there were such long lines if all 
the stations had gasoline to sell and were supposedly selling 
at 34 naira; apparently Nigerians thought those might be two 
excellent reasons to stock up. 
 
 
3. (SBU) Outside the city was somewhat different.  Inside the 
Abuja FCT and for tens of miles beyond its borders in Niger 
State most highway gasoline stations were closed October 10, 
with no supplies to sell.  That is usual for the 
independents, but very unusual for the national and 
international chains.  Most Mobil, Texaco, Total and Agip 
stations were empty.  Of the few stations that were open on 
the Abuja side of the state line, one AP station was selling 
at 38.5 naira, one Texaco station at 34, one Agip station at 
41.5, and one Conoil station at 38.5; on the Minna side of 
the state line a Total station was selling at 36.9, Nana at 
41, and Oyoyo at 40. 
 
 
4. (SBU) The prices were pretty much the same as in the city, 
literally the same for the major chains, but the lines were 
far shorter.  All but one of the stations required purchase 
of at least 20 liters, the exception being Texaco although it 
did not mention the surcharge when we inquired about price. 
There were many individuals along the sides of the highway 
selling gasoline from jugs, asking from 70 to 100 naira per 
liter.  Just as it was not apparent why there would be short 
lines at rural filling stations less than five minutes drive 
from their city counterparts charging the same price with 
lines stretching several blocks, it is unclear why motorists 
would by from jug-wielding individuals less than a kilometer 
away from stations where the line was less than five cars. 
 
 
5. (SBU) While the city stations were not embarrassed either 
by charging over the 34 naira agreed or by the long lines, 
the highway stations were much more tense.  One Unipetrol 
station turned off its pumps and the few cars in line 
scattered when our Embassy-plate vehicle entered.  We parked 
next to a tanker with a NUPENG (the national oil union) 
sticker on its door offloading fuel into a Texaco station's 
tanks in Minna state; its driver seemed unconcerned but most 
of the management at the station promptly disappeared.  The 
few pumpjockeys who remained said nothing, but pointed to the 
34 naira price on the pumps.  At the Oyoyo station above, 
four irate motorists were busy beating up another, apparently 
for cutting ahead in the longest line (11 cars) we saw 
outside the city -- a piker compared to over 40 in lines at 
many city stations.  But at one in Minna there was a very 
orderly line of cars crossing the highway under the calm and 
smiling direction of a policewoman into a station with the 
brand name Hansel.  We did not enter the station to check the 
price, or see if she was Gretel. 
ROBERTS