(Ecofin Agency) - Nigeria is heading towards another phase of fuel shortages as the drop in oil prices the country with less options for importing fuel.

Traders and sources have cautioned that new gasoline reservations have reduced as importers are unable to get the dollars required to purchase and the Nigerian National Petroleum Corporation has been unable able to sign deals quickly to exchange crude oil for gasoline.

Petrol shortages have taken place frequently as the country fought to make quick payments to importers. NNPC had recorded a $1.3 billion loss in 2015, make it increase direct gasoline imports to over 70% of the country's needs.

This week the corporation released a statement advising citizens not to panic or hoard petrol in a bid to assure consumers that it has sufficient petrol in store.

Despite the fact that Nigeria produces over 2 million bpd of crude, it refines a small amount of it, making it depend on gasoline imports that are price controlled by the government. Nigeria is also going through a severe dollar shortage as oil revenues represent nearly all its foreign reserves. None of the four refineries have been operating, making the country depend strongly on imports.

NNPC in 2015, entered into an agreement with Total, Varo Energy, Cepsa and Eni in order to exchange oil directly for gasoline and other products in February. Companies like Litasco, Noble and Total had acquired swap deals with NNPC through local joint ventures in February and March.

According to Reuters NNPC is making efforts to sign extra long-term contracts away from the 210,000 bpd of oil that was swapped in the past.

There are about 200,000 tonnes of gasoline stationed offshore, but not enough to meet the country’s weekly consumption. New March reservations have reduced to more than 100,000 tonnes far from what is needed.

Anita Fatunji