By Stanley Onyeka Lagos, and Tochukwu Bliss, Abuja
Despite claims of sufficient stock, the Independent Petroleum Marketers Association of Nigeria (IPMAN), says the current scarcity of premium potor spirit (PMS), popularly called petrol, may last for another two weeks.
What started as a “logistics Issues” in the Federal Capital Territory (FCT) Abuja and Lagos, has now spread to almost every part of the country – from the North to the South, and East to West.
Prices of the product vary according to outlet and location, with black marketers making a killing from the supply situation, as a litre of the scarce product sold for between N700 and N1,000.
This has also impacted transportation fares increasing by over 100% depending on the distance, leaving many commuters stranded at bus stops and parks.
IPMAN’s Public Relations Officer, Chinedu Ukadike, said yesterday that the scarcity will spread to even more states due to importation challenges as most refineries in Europe are undergoing turnaround maintenance.
Mr. Ukadike said: “Once there is a breach in the international supply chain, it will have an impact on domestic supply because we depend on imports.
“I also have it on good authority that most of the refineries in Europe are undergoing turnaround maintenance, so sourcing petroleum products has become a bit difficult.
“On the part of NNPCL, which is the sole supplier of petroleum products in Nigeria, they have attributed the challenge to logistics and vessel problems.
“NNPC Group CEO has assured us that there will be improvement in the supply chain because their vessels are arriving.
“Once that is done, normalcy will return. This is because once the 30-day supply sufficiency is disrupted, it takes two to three months to restore it.”
Aside from import challenges, IPMAN also blamed the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s (NMDPRA) slow pace of licence renewal, as aggravating an already bad situation.
According to the marketers, only 1,050 marketers out of 15,000 have had their licences renewed by NMDPRA.
Once there is a breach in the international supply chain, it will have an impact on domestic supply because we depend on imports.
Enough product stock
However, the Chief Corporate Communications Officer, NNPC Ltd., Olufemi Soneye, insisted that the long queues will clear in a matter of days given the Company’s stock levels.
He said: “The Nigerian National Petroleum Company Limited wishes to clarify that the tightness in the supply of Premium Motor Spirit currently being experienced in some areas across the country is a result of logistics issues and they have been resolved.
“It also wishes to reiterate that prices of petroleum products are not changing. It urges Nigerians to avoid panic buying as there are sufficient products in the country.”
The Major Energy Marketers Association of Nigeria (MEMAN), equally expressed similar sentiments, as its Chief Executive Officer/Executive Secretary, Clement Isong, said: “As the NNPC Ltd said, there were logistics issues and they have been resolved.
“The marketers who have fuel are working round the clock and the queues will be cleared in the coming days.”
