The current spate of petrol scarcity may worsen if independent petrol marketers withdraw their services as they have vowed to do.
Marketers under the aegis of the Independent Petroleum Marketers Association of Nigeria (IPMAN) said yesterday they will stop the supply of premium motor spirit (PMS), also known as petrol, if the federal government fails to pay the N200 billion outstanding bridging claims owed them.
This is as the Nigerian National Petroleum Company Limited (NNPCL) has said it currently has over 1.5 billion litres of petroleum products which can last for at least 30 days, blaming the persistent scarcity on speculators.
The latest round of fuel scarcity started over a week ago and has been affecting various parts of the country, with the situation becoming increasingly severe as the days go by.
The scarcity has led to long queues at petrol stations, with some stations selling fuel at prices as high as N800 per litre. The scarcity has also led to an increase in black market prices, with fuel selling at N1,200 per litre and above in some areas. The situation has caused hardship for many Nigerians.
Chief corporate communications officer NNPCL, Olufemi Soneye, in a text response to LEADERSHIP enquiry, said some people are taking advantage of this situation to maximise profits, adding that “thankfully, product scarcity has been minimal lately, but these folks might be exploiting the situation for unwarranted gain.
“We currently have an availability of products exceeding 1.5 billion litres, which can last for at least 30 days. Unfortunately, we experienced a three-day disruption in distribution due to logistical issues, which has since been resolved. However, as you know, overcoming such disruptions typically requires double the amount of time to return to normal operations.
The marketers’ threats to shut down their stations, which was contained in a communique issued by the IPMAN Depot Chairmen’s Forum in Abuja on Tuesday, and read by the chairman, Aba Depot, Mazi Oliver Okolo, indicated that the withdrawal of service would start anytime from now, following the expiration of the 40-day grace period given after a meeting with the minister of Petroleum Resources (Oil), Heineken Lokpobiri in February 2024, where the minister directed the Nigerian Midstream and Downstream Petroleum Regulatory Commission (NMDPRA) to pay off the outstanding bridging claims.
He, however, said that only N13 billion had been paid to their members, and that the unpaid claim has crippled their businesses.
He blamed the Nigerian National Petroleum Company Limited (NNPCL), the sole importer of petroleum products, for the current nationwide petrol scarcity, adding that some of its members had completely shut down their businesses, and retrenched their employees.
“We have watched with apprehension alsothe unpatriotic attitude of the leadership of the NMDPRA to offset this debt that has accrued to us since September 2022. As businessmen and women, our members acquired bank loans to keep their fuel retail outlets running daily across every nook and cranny of Nigeria to serve the teeming population of Nigeria. However, it is demoralizing to know that many of our members have gone bankrupt and have become financially insolvent as a result of their inability to meet their financial obligations to their banks, arising wholly from their inability to get their monies from the NMDPRA.
“Consequently, also, the banks have taken over the business premises of many of our members. As indigenous organisations, and depot chairmen, we are unhappy that rather than receive support from the government to boost our businesses, we are being discouraged by the head of NMDPRA.”
Okolo also claimed that the NNPC Ltd imports the products and supplies to private depots, who then sell to IPMAN members at exorbitant prices of between N820 and N950 per litre, adding that they pay an extra N2 million to transport it to other parts of the country, making it difficult for them to sell to Nigerians at the agreed pump price.
The IPMAN members called on President Bola Tinubu to closely look into the matter, which, according to them, is highly detrimental to their businesses and reverse it forthwith, as it is bound to impact negatively on the masses thereafter.
“We see no reason why there should be an increment of over 500 per cent on the Sales and Storage Licence by the NMDPRA. We totally reject it. We also hereby call on the federal government of Nigeria to wholly intervene forthwith in these lingering issues between IPMAN and NMDPRA.
“We are poised to take far-reaching decisions that may cripple the supply and sales of petroleum products across Nigeria, if our demands are not met within the shortest period,” the group said.
Commenting on the marketers’ claim of N200bn debt, a senior officer in the NMDPRA, Seiyefa Osanebi, told LEADERSHIP that payment of the bridging claims was always ongoing in the agency, adding that everyone will be paid.
Major Marketers Takes Delivery Of 300m Litres Of Petrol In Lagos
In a related development, the Major Energy Marketers Association of Nigeria (MEMAN) has confirmed availability of petrol and is working with key stakeholders to end the present product delivery glitch.
In a statement in Lagos, MEMAN said, “Our members in Apapa and other locations in Lagos are taking product from eight vessels this week with over 300 million litres of PMS, well above our normal levels.
“We are actively coordinating with our member companies through swaps and other supply arrangements to ensure member stations remain stocked.
“Our depots will extend their loading times to ensure we load out as much as we can, including tomorrow the 1st of May, 2024.”
It stated that independent marketers (depots and stations) were being allocated additional PMS to alleviate the situation.
“We expect the situation to improve in the coming days as supply chains adjust and stabilize,” it added.
While empathising with Nigerians over the return of queues across the country, MEMAN said it remains committed to keeping the public informed and providing timely updates.
It stated that the downstream regulator, NMDPRA, and other key stakeholders across the supply chain were fully engaged and supportive to eliminate the queues as swiftly as possible.
“Our top priority is to restore stability and ensure that fuel supplies reach all depots and retail outlets across Nigeria promptly. While the current situation has been challenging; we want to reassure the public that there is an adequate supply of PMS available,” the association confirmed.
Reps Summon Tinubu Over Scarcity
Meanwhile, the House of Representatives has invited the Minister of Petroleum Resources, President Bola Tinubu, and all relevant stakeholders in the industry to appear before the parliament and brief Nigerians on the measures put in place to end the current fuel scarcity and avert its reoccurrence in future.
The was sequel to the adoption of a motion of urgent public importance moved by the member representing
Makarfi-Kudan federal constituency of Kaduna State, Hon. Umar Shehu Ajilo, at plenary on Tuesday.
Moving the motion, Ajilo expressed worry over the lingering fuel scarcity accompanied by excessive increase in the retail price of Premium Motor Spirit in filling stations across the country which has no doubt occasioned additional hardship to the Nigerian citizen.
“This 10th Assembly must rise to the occasion to ensure that lasting measures are taken to address this unfortunate and embarrassing situation permanently in the interest of all Nigerians,” Ajilo stated.
We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →
Join Our WhatsApp Channel
