THERE
are strong indications that the Nigerian National Petroleum Corporation
(NNPC) and the oil sector regulator, Department of Petroleum Resources
(DPR) are becoming helpless and clueless as fuel scarcity worsens across
the country.
The NNPC, which remains sole importer of fuel as marketers have refused to import over non-payment of over N420 billion fuel subsidy arrears, lacks the logistics to ensure effective distribution of products.
The corporation, over the years, has relied on private depot owners and oil marketers for effective storage and distribution logistics.
This is the reason, according to a marketer who pleaded anonymity, “why marketers are powerful and critical to efficient distribution of products along the value chain.”
He argued further that the Treasury Single Account (TSA) has resulted in liquidity problems in the banking sector and “the banks do not have excess fund to finance importation of products once a particular limit has been reached based on agreement between both parties (fuel importer and the banker).”
On the regulator’s side, the DPR also lacks adequate manpower to enforce compliance against hoarding of products by marketers.
This may have accounted for high level of impunity among marketers regarding hoarding. Recently, the DPR shut down some depots, including Total and the agency also dispensed for free to motorists petrol from Conoil filling station at Apapa and Total filling station along Ikorodu Road due to hoarding of fuel.
Marketers have continued to hoard Premium Motor Spirit (PMS), otherwise called petrol and chose to sell mostly at night to motorists at between N150-N200 per litre in Lagos and its environs.
They have also encouraged black market operators to continually smile to the bank because they prefer to sell into gallons during the day. These operators in turn sell to desperate motorists who cannot afford to waste several productive hours at filling stations in an attempt to buy petrol.
Investigations by the Nigerian Tribune at the weekend revealed that from Law School area to Lekki-Ajah axis, no filling station was dispensing on Saturday during the day.
Only Mobil filling station at Anthony bus stop, Forte Oil at Onipanu bus stop and Oando filling station at Town Planning was, all situated along Ikorodu Road, Lagos, were selling as at the time of visit.
Total stations, NIPCo and Conoil along Ikorodu Roads were not selling.
Conoil station situated along 7-Up axis of Toll Gate area on Lagos-Ibadan Expressway was offering skeletal services to motorists. This is because the management chose to sell to selected customers as at the time of investigation on Sunday.
Mobil, Oando and Matrix filling stations were dispensing to motorists while Total, MRS, World Oil and Capital Oil were not dispensing.
While most of the major marketers were selling at N87 per litre, the stress of getting fuel at all forced many Nigerians to patronize black market operators without stress.
However, industry stakeholders, at the recently concluded Oil Trading and Logistsics (OTL) Expo in Lagos, have warned that government’s inability to pay the outstanding fuel subsidy debt will not only hinder marketers from having the resources to further invest in product importation, but it has led to huge loan portfolios in the books of importers.
The Chairman, OTL Advisory Board, Mr. Stanley Reginald, said that the scarcity cannot be left out of the debt government owed marketers.
The NNPC, which remains sole importer of fuel as marketers have refused to import over non-payment of over N420 billion fuel subsidy arrears, lacks the logistics to ensure effective distribution of products.
The corporation, over the years, has relied on private depot owners and oil marketers for effective storage and distribution logistics.
This is the reason, according to a marketer who pleaded anonymity, “why marketers are powerful and critical to efficient distribution of products along the value chain.”
He argued further that the Treasury Single Account (TSA) has resulted in liquidity problems in the banking sector and “the banks do not have excess fund to finance importation of products once a particular limit has been reached based on agreement between both parties (fuel importer and the banker).”
On the regulator’s side, the DPR also lacks adequate manpower to enforce compliance against hoarding of products by marketers.
This may have accounted for high level of impunity among marketers regarding hoarding. Recently, the DPR shut down some depots, including Total and the agency also dispensed for free to motorists petrol from Conoil filling station at Apapa and Total filling station along Ikorodu Road due to hoarding of fuel.
Marketers have continued to hoard Premium Motor Spirit (PMS), otherwise called petrol and chose to sell mostly at night to motorists at between N150-N200 per litre in Lagos and its environs.
They have also encouraged black market operators to continually smile to the bank because they prefer to sell into gallons during the day. These operators in turn sell to desperate motorists who cannot afford to waste several productive hours at filling stations in an attempt to buy petrol.
Investigations by the Nigerian Tribune at the weekend revealed that from Law School area to Lekki-Ajah axis, no filling station was dispensing on Saturday during the day.
Only Mobil filling station at Anthony bus stop, Forte Oil at Onipanu bus stop and Oando filling station at Town Planning was, all situated along Ikorodu Road, Lagos, were selling as at the time of visit.
Total stations, NIPCo and Conoil along Ikorodu Roads were not selling.
Conoil station situated along 7-Up axis of Toll Gate area on Lagos-Ibadan Expressway was offering skeletal services to motorists. This is because the management chose to sell to selected customers as at the time of investigation on Sunday.
Mobil, Oando and Matrix filling stations were dispensing to motorists while Total, MRS, World Oil and Capital Oil were not dispensing.
While most of the major marketers were selling at N87 per litre, the stress of getting fuel at all forced many Nigerians to patronize black market operators without stress.
However, industry stakeholders, at the recently concluded Oil Trading and Logistsics (OTL) Expo in Lagos, have warned that government’s inability to pay the outstanding fuel subsidy debt will not only hinder marketers from having the resources to further invest in product importation, but it has led to huge loan portfolios in the books of importers.
The Chairman, OTL Advisory Board, Mr. Stanley Reginald, said that the scarcity cannot be left out of the debt government owed marketers.
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