Fuel Scarcity Hits Nationwide As Illegal Hawkers Thrive

VAM News August 19, 2024 in National Tagged Fuel Scarcity, Hawkers - 11 Minutes

Voice Air Media, News Update

THE biting scarcity of Premium Motor Spirit (PMS), also known as petrol, which had hit the Federal Capital Territory (FCT) since over one month, became more acute at the weekend and spread nationwide, with fuel queues on a scale not seen in recent times, and the product selling for more than N1,000 per litre in some places.

The scarcity led to disruption of commercial and social activities at the weekend in Abuja and the country’s commercial capital of Lagos, as well as Kaduna, Kano, Port Harcourt, Niger, Nasarawa, and several other states.Many filling stations shut down their operations due to the severe undersupply of PMS.Although Nigerian National Petroleum Company Limited (NNPCL) had said the shortages were caused by “distribution” challenges, it did not specify the cause of the current spike, which had lingered in Abuja and environs for over four weeks.

But NNPC denied reports that it was indebted to international oil traders to the tune of $6.8 billion and that it had not remitted revenues to the Federation Account since January, among other allegations. In several parts of Abuja, a 10-litre container of petrol sold for as high as N12,000 on the black market, while private filling station owners sold for between N700 and N1,050 per litre, depending on location. However, the few NNPC mega stations in Abuja still sold for N617, but with queues stretching several kilometres.The situation led to the skyrocketing of transport fares, with the doubling of rates in many routes within Abuja.

From the NNPC mega station on the Gwarimpa axis of the Zuba-Kubwa Expressway to Conoil and Total filling stations, directly opposite the headquarters of the national oil company in the Abuja city centre, as well as Salbas filling station at the Dei-Dei end of the Zuba-Kubwa expressway, the story was the same.In Zone 1, the NNPC mega station on Olusegun Obasanjo Way was open, and the one opposite GSM village also had the product, but with extremely long queues. Other stations around the area, including Total filling station, did not have the product. The NNPC filling station in Mabushi did not open to the public when THISDAY visited.

Speaking on Arise Television at the weekend, the president of Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, blamed the situation on “panic buying”.Maigandi said, “There was protest for almost seven days and most of the depots were not loading. During the protest, we informed all our marketers to sell their products in 24 hours so that there will be no side effects in terms of the purchase of the petrol.“Immediately they called off, then we rushed to where we were supposed to load this product and we have started loading. Some of the trucks are already on the way, but we are having some challenges.“The vessels that are supposed to bring the product to the tank farm were experiencing some delays in movement due to the rain, but that problem has been resolved.”

Separately, Maigandi told THISDAY how his members groaned under the supply shortage. He said petrol was the main product that kept them in business. In what appeared to be a U-turn, Maigandi said NNPCL had not really told them what the issue was, beyond the logistics claims.In Lagos, the current petrol scarcity assumed an alarming dimension, with most of the major filling stations shut while a few that opened for business were flooded by long human and vehicular queues that stretched along major roads.

Some marketers, who spoke with THISDAY, blamed the endless scarcity on huge subsidy payments, despite persistent claim by President Bola Tinubu and his team that subsidy had been removed from the petrol marketing equation in Nigeria.The marketers said they had no option than to shut down their filling stations since the product was not available. They said only Tinubu had the answer to the scarcity, not NNPCL, which had become the sole importer of petrol and the risk bearer for the government.

THISDAY observed that on Awolowo Road in Ikoyi, Lagos, only the two NNPC mega stations were selling the product, but with heavy queues of desperate motorists and jerry-can-bearing buyers that crammed the facilities, causing heavy traffic gridlock on the busy road.The Total filling station on Mobolaji Bank Anthony Way, Ikeja, was not selling, while the Northwest filling stations at Maryland Bus Stop was open, but with heavy queues that caused traffic congestion on Ikorodu Road towards Palmgroove.

The Conoil filling station in Ikeja, opposite LASUTH, was not open for business.At the Cele-Okota axis, only Pinnacle filling station was selling as of yesterday, while other nearby stations, such as Conoil, Rainoil, Emadeb, Total, and MRS were shut.Similarly, at Gbagada, at the foot of the Third Mainland Bridge, only Northwest Petroleum was selling, and still with heavy queues and resultant traffic congestion on the road.The story was the same in Surulere, where most of the filling stations were either shut or open for skeletal trading with heavy queues.Amid the scarcity yesterday, NNPC sold between N650 and N700 per litre at its stations in Lagos. But private marketers that were open sold between N750 and N900. Black marketers, who sell in jerry-cans, sold as high as N1,500 to N2,500 per litre, depending on location and desperation of the buyer.Expressing their frustration with the situation, some of the marketers, who spoke with THISDAY, anonymously, blamed the persistent fuel supply challenge on subsidy.

One of the marketers, who said he was a member of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), said the problem would not go away any time soon as long as there was still subsidy and government was not willing to own up and address it once and for all.He said, “What do you think is the problem? It is subsidy. Subsidy is heavy in the system but government keeps denying that. Have you checked the cost of petrol in other countries? No marketer will be willing to buy and sell below the cost price. So only NNPC can import and sell at below its landing cost because it is government; because only NNPC gets dollars at the official rate. No other marketer has that advantage.

“So, we have said it again and again that subsidy is not sustainable. Because it creates the kind of problem we are seeing. Because it kills competition and investor confidence. It creates corruption and lack of transparency. The moment you genuinely remove subsidy from petrol, you will not see scarcity again. It will now be based on willing buyer, willing seller.

“So, I think people should stop calling out NNPC and blaming them. It is not their own making. They are government and government tells them how they want the system to be run. Government made NNPC the sole importer of petrol and its risk-bearer. No NNPC chief executive can go against the directive of the president.”A top official at 11Plc, owners of Mobil filing stations, told THISDAY that his company had run out of stock and had been waiting for new supply from NNPC.In Rivers State, THISDAY investigation across local government areas and communities revealed that a litre of petrol had skyrocketed from N700 to between N880 and N900.

While some of the major marketers, including Oando and Conoil, sold at N900, other independent marketers sold between N870 and N888. NNPC sold at N591 per litre, but with long queues.Visits to filing stations revealed that Stip International Global Venture, Jiang oil and gas, along NTA Road, Ozuoba, sold at N880 per litre, while Oando in old Port Harcourt Township, Conoil at Education Bus Stop in Diobu axis of Port Harcourt sold at N900.

Chikweri Petroleum and Giccel Limited in Ogbogoro, Obio/Akpor, sold at N880 and N900, respectively. Izumba Filing Station on Rukpokwu by C4i checkpoint and Hydropet along Eliporanwa, Rumuolumeni, sold at N900.Request Filing station at Igwurita sold the product at N888 per litre, Eterna Filing station at Rumuokwuta sold at N870, while NNPC on Aba Road by Road Safety office, sold at N591 per litre.

In Kaduna State, PMS sold at few filling stations cost between N760 and N950 per litre, depending on where the stations got their supply.At Omosco filling station, located along Yakowa Way, Kaduna, petrol sold for N950 per litre, while at Rain Oil, located at Refinery junction, Kaduna, and Mobil filling station located along Warf Road, Kaduna, it cost between N880 and N760.Many of the NNPC mega stations located along Marraban Rido after Indomie factory, Barnawa near Living Faith Church, and Ali Akilu Way, among others, did not have the product.

Transport fares also rose in Kaduna as a result of the hike in petrol prices. Fares from places like Sabon Tasha, Gonin-Gora, Narayi and Kakuri among other areas within the metropolis, which used to be between N250 and N300 to the Central Market, now cost between N400 and N500.The situation was not different in Kano, with long queues resurfacing, as motorists struggled to buy petrol, which cost over N800 per litre.Checks revealed that both the independent and major marketers in Kano had earlier closed their outlets throughout last week. Motorists queued in large numbers at Total filling stations along BUK, and Zoo road, with motorists buying for N889 per litre.

There were long queues at Aliko filling stations along Maiduguri road, Zaria road, and BUK road, as motorists waited in line for an extended period to buy the fuel sold at N750 per litre, which was considered the cheapest compared to other filling stations.NNPC sold the product at N617 per litre, but had extremely long queues.However, most of the filling stations, particularly those located on the outskirts of Kano, took advantage of the fuel shortage and high demand by charging exorbitant prices, up to N1,000 per litre.

NNPC blamed the current product shortage on evacuation challenges, and promised to resolved it by midweek.In a terse response to THISDAY’s inquiry, earlier on Sunday, Chief Corporate Communications Officer of NNPC, Mr Femi Soneye, stated, “We are currently experiencing some evacuation challenges in Lagos, but they should be resolved by midweek.”

Similarly, in a short statement issued afterwards, Shoneye said NNPC regretted the shortages in fuel supply, which he said resulted from distribution challenges.He urged motorists to shun panic buying, as the company was working with relevant stakeholders to resolve the situation.

The statement read, “The NNPC regrets the tightness in fuel supply witnessed in some parts of Lagos and the FCT, which is as a result of distribution challenges. The company further urges motorists to shun panic buying as it is working round the clock with relevant stakeholders to restore normalcy.”Yesterday, also, NNPC denied reports that the company was indebted to international oil traders to the tune of $6.8 billion and that it had not remitted revenues to the Federation Account since this year.

Soneye stated, “Consequently, the following clarifications have become necessary: that NNPC Ltd. does not owe the sum of $6.8 billion to any international trader(s). In the oil trading business, transactions are carried out on credit, and so it is normal to owe at one point or the other.“But NNPC Ltd., through its subsidiary, NNPC Trading, has many open trade credit lines from several traders. The company is paying its obligations of related invoices on a first-in-first-out (FIFO) basis.

“It is not correct to say that NNPC Ltd. has not remitted any money to the Federation Account since January. NNPC and all its subsidiaries remit their taxes to the Federal Inland Revenue Service (FIRS) regularly. This is in addition to payments of Company Income Tax (CIT) to road contractors under the Road Investment Tax Credit Scheme.

“In all, NNPC Ltd. is the largest contributor to the tax revenue shared every month at the Federation Account Allocation Committee (FAAC).”On the issue of “quality/quantity fiscalization” of imported petroleum products, NNPC said it had no role whatsoever as it was not a regulator.

Soneye stated, “The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which is the relevant regulatory agency in charge of such issues, is an independent body and does not report to the NNPC. “

He said NNPC was not averse to inquiries by the media into issues on and around its operations before dissemination to the public either through the print or electronic channels of communication as the company would always take the opportunities to state the facts.He stated, “This is in line with the company’s commitment to the Transparency, Accountability, and Performance Excellence (TAPE) philosophy as emplaced by the Mele Kyari-led management since stepping into the saddle in 2019.”

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