Fuel scarcity: Depot owners extend loading hours to help ease the situation

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Fuel scarcity worsens in Lagos, Abuja as major marketers receive 2 vessels of petrol

Long queues seen in the few filling stationsm that have the product.

As the blame game between the Nigerian National Petroleum Company (NNPC) Limited and 4 oil trading companies on who is responsible for the importation of the contaminated petrol rages on, the fuel scarcity appears to have persisted in Nigeria’s commercial nerve centre, Lagos and the country’s administrative capital, Abuja.

This is despite assurances from NNPC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of their capacity to restore normalcy in the supply and distribution of good quality fuel by last weekend and eliminate long queues of vehicles at the various filling stations.

The NNPC had ordered a recall of the contaminated fuel from the marketers leading to a shortage in supply and the emergence of black marketers who sell the scarce product in jerry cans between N400 to N800 per litre as a result of petrol scarcity.

Investigation by Nairametrics showed that the fuel supply situation which seemed to have improved last week Friday in some parts of Lagos with fewer queues of vehicles in filling stations, appear to have worsened by Sunday with many filling stations shutting their doors to motorists.

It was noticed that majority of the filling stations in Ikeja, Ogudu, Surulere, Oshodi, Awolowo Road Ikoyi, Amuwo Odofin, were not selling fuel, while the few that were open for business, had long queues of vehicles.

Long queues could be seen in the few stations selling with both private and commercial motorists complaining about the situation as commuters were stranded in various bus stops.

The regulator, NMDPRA, has since remained mum on the current situation of fuel distribution and non-availability of the product at most filling stations in Lagos, Abuja and some other states affected by the fuel scarcity.

MOMAN claims to have received 2 vessels of petrol

Meanwhile, the Major Oil Marketers Association of Nigeria (MOMAN) said it has received 2 vessels of petrol as scarcity of the product continues unabated in Lagos and other parts of the country.

According to NAN, this was made known on Tuesday in Lagos by the Executive Secretary of MOMAN, Mr Clement Isong, Executive Secretary, MOMAN, who said the NNPC took delivery of the vessels.

Isong said the recent importation of off-spec petrol into the country and the subsequent directive to withdraw the affected products from the market created a huge supply gap.

He said, “We know that the withdrawal of the four vessels disrupted the supply chain leading to panic buying by Nigerians.

“We (MOMAN) members have so far received two vessels from the NNPC since our last meeting on Wednesday and we believe the NNPC and other stakeholders are working tirelessly to see how this problem can be resolved.”

Isong said it has become quite important for the downstream petroleum sector to be fully deregulated with the importation of PMS liberalised to ensure improved supply and stability.

  • Recall that oil marketers and some stakeholders had earlier attributed the current fuel scarcity in Lagos, Abuja and some other states to the withdrawal of adulterated petrol by the NNPC. They said that some of the petrol imported into the country under the Direct Sale, Direct Purchase (DSDP) contract had a high content of methanol and ethanol, which are regarded as highly harmful.
  • Finally, breaking its silence on the crisis, the Federal Government through the NMDPRA, confirmed the earlier reports, saying that it found out the affected petrol supply chain that was in circulation, had methanol quantity that is above Nigeria’s specifications and subsequently had to withdraw them.
  • The Chief Executive Officer of NMDPRA, Mr Farouk Ahmed, in his reaction to the resurgence of fuel queues in Lagos and Abuja, said methanol quantity above Nigeria’s specification was discovered in a supply chain, which has since been isolated.
  • The Federal Government through the NNPC imports petrol through crude-for-fuel contracts, known as direct sale, direct purchase (DSDP), with consortia of local and foreign oil firms.
  • Fuel scarcity: Depot owners extend loading hours to help ease the situation

    Urges the buying public to kindly desist from panic purchases.

    Dame Winifred Akpani, the Chairman of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has said that member companies of the association have resulted in extending loading hours in their depots and retail outlets to help ease the fuel scarcity in Nigeria.

    In a statement issued by DAPPMAN on Wednesday, the association urged the public to desist from panic buying as more fuel-laden vessels have continued to arrive in the country to remedy the situation.

    Ms Akpani noted that with the collective efforts of all stakeholders, the current challenges of petrol purchase from various retail outlets will end.

    What DAPPMAN is saying

    Ms Akpani assured the general public and DAPPMAN’s customers that all hands are on deck to help curb the situation of fuel scarcity in the country

    She said, ”DAPPMAN depots and retail outlets have commenced, within the security and safety limits allowance, extended hours of loading from our various depots and in all our retail outlets until the situation normalises.”

    “We believe with the support and co-operation of all stakeholders, including Pipelines and Products Marketing Company Ltd. and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the current challenges of petrol purchase from our various retail outlets will be over.”

    “DAPPMAN urges the buying public to kindly desist from panic purchases as some stocks of PMS have been received by our members for distribution to our retail outlets and other registered interested and willing retailers.

    “We have worked assiduously with the regulatory authorities from the onset to curtail the further distribution of the off-spec fuel in all DAPPMAN depots and retail outlets.

    “DAPPMAN also seconded versatile professionals to the Technical and Commercial Committees set up by the regulators and stakeholders who have initiated best practices ‘Standard Operating Procedures”

    “This is to ensure that the off-spec products are quarantined, professionally processed, tested and certified good for distribution to the market.

    “We are also working with Nigerian National Petroleum Company Ltd., through its subsidiary, the PPMC Ltd., to ensure that adequate stocks of ‘on-spec’ petrol are made available to Nigerians in all nooks and crannies of the nation.”

    She empathised that the current hardship which was as a result of the importation of some quantities of off-spec Premium Motor Spirit (PMS) into the country.

    • Sources had reported that the Nigerian National Petroleum Corporation Limited (NNPC) had commenced the distribution of one billion litres of safe Premium Motor Spirit (PMS) to fuel stations across the country.
    • It was also reported that black market fuel sellers in Abuja are cashing out at the opportunity of the brisk business as a result of the fuel scarcity. A litre of fuel which sold for N162 per litre only a few weeks ago at petrol stations now sells for N300 to N500 per litre by black marketeers.
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