Fuel Scarcity Bites Harder Amid NNPC’s Assurance Of 1billion Litres

The acute shortage of petrol ravaging the country entered the ninth day yesterday provoking over 50 per cent rise in transport fares in many parts of the country despite reassurances from both the Nigerian National Petroleum Company (NNPC) Limited and the Nigerian Midstream and  Downstream Petroleum Regulatory Authority (NMDPRA) that the situation would soon normalise.

Roadside petrol black marketers made brisk business as they were in various locations within the Federal Capital Territory,  Abuja, and environs trading the commodity between N500 to N600 per litre.

As a result of the short supply of petroleum product,  motorists queued for hours at filling stations seeking to purchase fuel, with some spending as much as six hours or more while others keep vigil on fuel queues so they can be among the first to be served the next morning.

Consequently, commercial transporters quickly hiked their fares, thereby, deepening the woes of the people.

However, the NNPC, yesterday, disclosed that it had over one billion litres of petrol in stock and that its retail outlets with those of major oil marketers had commenced a 24-hour service to ensure that more motorists are attended to daily.

The NNPC group executive director, Downstream, Adetunji Adeyemi told journalists in Abuja that about 2.3 billion litres of petrol would arrive in the country between now and the end of the month to address the supply gap.

Adeyemi said a joint monitoring team had been set up to ensure smooth supply of petrol nationwide.

He said: “The NNPC Ltd understands the current fuel supply disruptions in many parts of the country, which was caused by the discovery and subsequent quarantine of methanol-blended cargoes of Premium Motor Spirit (PMS), commonly referred to as Petrol.

“To address the situation, over 2.3 billion litres will arrive in the country between now and end of February 2022. This will restore the sufficiency level above the national target of 30 days.

“As of today (yesterday), NNPC has over one billion litres of petrol in stock, and the petrol being dispensed today at the various filling stations in the country is safe.”

In order to accelerate PMS distribution across the country, NNPC has commenced 24-hour operations at its depots and retail outlets.

Similarly, Major Oil Marketers Association of Nigeria (MOMAN), Depot Owners, the Petroleum Products Marketers Association of Nigeria (DAPPMAN) and Independent Petroleum Marketers Association of Nigeria (IPMAN) have commenced 24-hour loading and dispensing activities in some of their designated outlets.

“NNPC has constituted a monitoring team, with the support of the Authority (NMDPRA) and other security agencies to ensure smooth distribution of PMS nationwide.

“NNPC implores Nigerians to avoid panic buying and assures that the ongoing efforts will be sustained to restore normalcy in a few days’ time”, he added.

Meanwhile, cab drivers in Abuja city centre jacked up their rates by over 50 per cent, collecting N800 for trips that they previously accepted between N500 and N600 for.

Likewise, cab-hailing companies have quickly adjusted their pricing system to align with the current realities in order to maintain their profit margins while keeping the fleet owners and the drivers on their platforms happy even in the face of the hardships caused by the insufficient stock of petrol.

On one of the e-hailing apps, a regular trip from the Novare Gateway Mall in Lugbe district to the Nnamdi Azikiwe International Airport which used to cost about N2,700 was adjusted to N3,200 on Tuesday.

Depending on the distance covered, these findings indicate that the current scarcity of petrol has led to a double/triple digit inflation rate in the commercial transport sector of the FCT, which ranges from 50-200 per cent.

In Lagos, the commercial capital, the petrol supply shortages which began in the state barely a week ago is now crippling transportation network in the state as public transport operators have adjusted fares as the situation worsened yesterday.

Investigation shows that most petrol stations now sell above government approved pump price of N162 a litre.

An independent petrol station which opened operations about a month ago in Maryland is selling between N165 to N170 a litre.

Also, black market operators have taken over the market as long queues discourage motorists who now stay more than eight hours in the queue before getting to the dispensing pumps.

Investigations revealed that a five litre of petrol at the black market sells for between N1,500 to N2,000.

The ongoing scarcity has also affected the diesel market as a litre of diesel sells for N420 as against N350 and N370 a litre.

At the moment, Primero Transport Services Limited, operators of the Lagos Blue Bus Rapid Transport, BRT, is set to review its services as its operations have been largely challenged.

Our correspondent who monitored haphazard operations of the company observed that few of the regular buses now ply the road leaving commuters stranded for hours.

An angry commuter told our correspondent that she was at the BRT bus stop for over four hours before boarding an overcrowded bus that combined passengers from multiple routes heading to Tafawa Balewa Square, TBS.

One of the drivers who spoke to our reporter claimed that the management had cautioned them on diesel management.

He said they had few buses on the road presently and now combine different routes in overcrowded buses.

Further inquiry showed that the company is managing to sustain its services but from indications few more buses may be withdrawn in the coming days if the situation remains the same.

Mutiu Yekeen, head of Corporate Communications of Pimero, while confirming the difficulty in operations, said that the company as an essential services firm was struggling to sustain operations.

He said, “Today we buy diesel for N420 a litre as against N350 and N370 we bought previously. Diesel alone take about 60 per cent of our operational cost at that time, so you can imagine what it costs us as a company to sustain operations today with the rising cost of diesel.

“I can tell you that we have product in our depot but we are taking extra measures to curtail its use. We have informed our drivers of the precarious diesel situation and to be more prudent so that we sustain operations to support Lagos State government’s efforts to keep the economy running.”

Yekeen added that the company cannot quantify the losses incurred as a result,  but that it cannot afford to ground the economy given the commercial nature of the state.