Fuel scarcity looms as marketers ration product

Posted by News Express | 19 February 2016 | 2,862 times

Gmail icon

As long queues return to filling stations in Lagos, there is growing anxiety that the shortage of Premium Motor Spirit (PMS) otherwise known as petrol may soon hit the nation.

The looming scarcity may have been compounded by a strike by members of the Petroleum Tanker Drivers (PTD) Association, Mobil Road, Apapa, Lagos, who are protesting against what they called the unjust removal of the members of the Tunde Akinade-led executive of the association.

Long queues were particularly noticeable at filling stations in Surulere, Victoria Island, Lagos Island and Ikoyi, in Lagos metropolis. Reports have it that the queues have also started building up in Port Harcourt, Rivers State, Owerri, Imo and Abakaliki, Ebonyi.

But the Group General Manager, Group Public Affairs Division, Ohi Alegbe, while assuring that the midstream subsidiary of the Nigerian National Petroleum Corporation (NNPC), the Pipeline and Products Marketing Company (PPMC), had intervened in the dispute and that normalcy would soon be restored assured that there was sufficient stock of products in Lagos and across the country. He advised motorists not to resort to panic buying as the situation was under control.

The corporation reiterated its commitment to uninterrupted product supply to the general public in keeping with its mandate.

The Manager, Public and Government Affairs of Mobil Oil Nigeria, Akin Fatunke, told The Guardian that there was never an issue between Mobil and PTD, but internal differences within the association.

The chairman, secretary, financial secretary of the tanker drivers body were suddenly removed from their office on Monday and allegedly replaced with others after an election.

One of the members of the association, Mr Mohammed Katsina, disclosed that the constitution did not give room for an overthrow of the members of the executive. “The elected executive members must complete their tenure and there is no going back on our strike until their positions are restored,” he said.

Meanwhile, many marketers are unhappy over the fuel imports allocation quota issued by the PPPRA where the Nigerian National Petroleum Corporation (NNPC) was given 78 per cent with other marketers sharing the remaining 22 per cent.

This situation has created a huge deficit in the supply value chain, as depots are now largely used as throughput rather than product importation business.

A fuel marketer, Ajayi Hassan told The Guardian yesterday that the product was scarcely available at the normal price at the depots, thereby forcing marketers to sell at higher price or adjust the pumps.

Hassan said: “There is scarcity of products. The NNPC is not importing enough, and we are not getting at normal price at the depots. The independent marketers have exhausted their stocks and we are all relying on NNPC. The main issue is that the NNPC often delay product supply after. They will ask you to pay but they will not give you product until after four months. How will I pay today and be waiting for the next four months before I can sell fuel?

“Many of the marketers have shut down their stations because they are not making profit at the official price. In fact, I have also shut down one of my stations and I am also planning to shut another one before month end.”

It was learnt that most of the independent and major marketers have imported and emptied their tanks, they are now waiting for next allocation.

•Excerpted from The Guardia. Photo shows fuel queue.

Source: News Express

Readers Comments

0 comment(s)

No comments yet. Be the first to post comment.

You may also like...