By Adewale Sanyaolu and Adanna Nnamani, Abuja
Motorists in various regions of the country are enduring another wave of petrol shortages, with the situation becoming increasingly dire. The ongoing crisis has ignited a blame game between oil marketers and the federal government, each accusing the other of being the primary cause of the turmoil.
Oil marketers argue that a significant decline in the volume of petrol imports is the main driver behind the shortages. They claim that logistical challenges and financial constraints have severely impacted the supply chain, leading to a dwindling availability of fuel. On the other hand, the National Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) attributes the crisis to rampant retail exploitation. The NMDPRA contends that some retailers are engaging in price gouging and hoarding, exacerbating the scarcity, particularly in the Federal Capital Territory (FCT). They maintain that such practices are inflating prices and creating artificial shortages, further straining the already stressed market.
As the crisis unfolds, the blame game continues, leaving motorists to bear the brunt of the shortages while the true root causes remain contested. On Sunday, many independent filling stations in Lagos were out of stock and their gates were shut against motorists.
Some of the NNPC outlets and that of other major marketers in Abule Egba, Ogba and Ikeja were equally out of stock. In a telephone interview, the National President, Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr. Debo Ahmed, said “there is shortage in the import level as we speak.
‘‘I can confirm to you that there are issues around petrol import level which has dropped in recent times. We are hearing that this may be connected to issues around payment. The situation is even worse in Abuja.’’
Ahmed said IPMAN the relevant authorities have not been able to confirm to them (marketers) what the actual challenge is.
Ahmed, however, assured that the current hiccups may not last beyond next week as all hands are on deck to resolve all issues around the supply chain.
Reacting to the development, NMDPRA Spokesperson, George Ene-Ita, told Daily Sun telephone that some retail dealers were withholding sales despite adequate reserves in their underground tanks, thus contributing to artificial scarcity.
Ene-Ita, however, assured that efforts were underway to ramp up field operations and restore normal supply levels within the next few days.
He urged residents not to panic, assuring them that the regulatory authority is actively addressing the issue to ensure equitable distribution of fuel across the capital.
He said: “Well, as per the queues in Abuja, the issue is down to logistics in supply volume to the North Central, Abuja in particular. Also, some retail dealers are trying to exploit this short term supply gap to create artificial scarcity by withholding sales even where there is enough in their underground tankage.
“So, the Authority is ramping up field operations to respond to this situation and in a matter of a couple of days supply will normalize. FCT residents should be assured that there is nothing to panic about.”
In another development, a report by Reuters last week disclosed that Nigeria’s debt to gasoline suppliers has surpassed $6 billion – doubling since early April – as NNPC struggles to cover the gap between fixed pump prices and international fuel costs.
Reuters, which linked the report to six industry sources said NNPC has still not paid for some January imports, traders said, and the late payments amount to $4 billion to $5 billion. Under contract terms, NNPC is meant to pay within 90 days of delivery.
“The only reason traders are putting up with it is the $250,000 a month (per cargo) for late payment compensation,” one industry source said.
In reaction to the $6 billion petrol debt claim, the Chief Corporate Communications Officer of NNPC Ltd, Mr. Olufemi Soneye, described the Reuters report as fake news.
Soneye added that it was incorrect that the company has incurred $6 billion petrol payment backlogs.
“That is false. I do not know anything about that. It is fake news. Did they name the marketers they claim we supposedly owe? Let them name them.”
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