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Motorists Lament As Fuel Queues Spread

by Chika Izuora
11 months ago
in Business, News
Fuel Queues
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Motorists in Abuja and Lagos are facing significant hardship as fuel scarcity leads to long queues at petrol stations. Since last week, many filling stations have either closed or are selling petrol at inflated prices, with some charging up to N850 per litre.

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The Nigerian National Petroleum Company Limited (NNPC) attributes the crisis to supply chain disruptions caused by adverse weather conditions and logistical challenges. Commuters report transport fares have surged by 20 per cent, and many are turning to black market sellers, who charge as much as N1,300 per litre, exacerbating the situation further

Petroleum products marketers have called on the Nigerian National Petroleum Company Limited (NNPC) to resolve the ship-to-ship loading challenges that is creating a supply gap for Premium Motor Spirit (PMS) called petrol, in the country.

The challenge has created bottleneck leading to long queues at petroleum dispensing outlets in Lagos and neighbouring states as this has also triggered profiteering among marketers and resurgence of black market.

The marketers association who spoke to our correspondent denied scarcity reports but only confirmed that short draft channels of our ports have been challenging supply to depots.

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The general secretary of Petroleum Dealers Association of Nigeria (PEDAN), Ibrahim Yahaya, confirmed to our correspondent that there is petrol availability but reaching the depots has been the problem. Yahaya said, the NNPC is making frantic efforts to normalise the situation.

On his part, the executive secretary of the Major Energy Marketers Association of Nigeria (MEMAN) Clement Isong, expressed concerns about the scarcity.

He told our correspondent he was not aware of any scarcity but there could be some sort of supply hitches.

Also reacting to the situation, the president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry attributed the issue to subsidy removal which is very costly to the NNPC to manage.

Gillis-Harry also said, the cost of hiring marine vessels by marketers to evacuate products from big vessels on the high sea is expensive as they charge in dollars.

 

At the same time, he said, apart from high exchange rate scarcity of forex is equally compounding the situation.

 

He further stated that, the varied pump price being experienced is as a result of landing cost, logistics costs which raises cost to over N1, 300 a litre and government would want pump price not exceeding N600 a litre.

 

This, he said, is putting enormous pressure on the NNPC and exacerbates the situation more.

 

However, the NNPC, in a statement signed by its chief Corporate communications officer (CCCO), Olufemi Soneye, read: “The NNPC Ltd wishes to state that the tightness in fuel supply and distribution witnessed in some parts of Lagos and the FCT is as a result of a hitch in the discharge operations of a couple of vessels.”

 

 


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