Fuel Scarcity – Why Every Christmas

I can’t stop wondering why fuel scarcity occurs during Christmas season. I have gone through reports but instead of getting an answer, I got more confused because the stakeholders in the oil sector are busy playing blame games. Join me as we go through some reports; maybe it will make sense to someone.

During the time of President Goodluck Ebele Jonathan, the issue of fuel scarcity was timely handled. The short period that Nigerians experienced fuel scarcity then, the Federal Government met with marketers through Ngozi Okonjo-Iweala who spoke to journalists then in Abuja saying that the scarcity then was mainly due to pipeline vandalism and logistics and not payment of claims to marketers.

Haruna Momoh, Managing Director of the PPMC, also lamented the absence of effective pipeline network, due to pipeline vandalism across the country, saying it is a major challenge to fuel distribution across the country.

Speaking further to marketers, Okonjo-Iweala urged Nigerians to question the motive of some marketers who refused to open Letters of Credit to facilitate their payments, thereby making it difficult for the fuel scarcity situation to end.

Meanwhile, Capt. Emmanuel Iheanacho attributed the persistent scarcity of petrol to monopoly of the product by the Nigerian National Petroleum Corporation (NNPC) saying that the inability of NNPC to create a window for private importers to import petrol also contributed to the scarcity. Consequently, Mr. Adewole blamed the NNPC for the fuel crisis. He accused the state-owned oil corporation of assuming the role of the sole importer of petroleum products, despite the fact that DAPPMA members owned 80 per cent of the functional fuel storage facilities and retail outlets in the country. He went further to say that it is on record that any time NNPC assumes the role of sole importer, there are issues of distribution, because it is marketers who own 80 per cent of the functional receptive facilities and retail outlets in Nigeria.

Moreover, Capt. Emmanuel Iheanacho stated that shortage of foreign exchange and increase in crude prices have made it unprofitable to import petrol and sell same at N145 per litre, adding that private importers backed out because the increase in crude price has made the landing cost high.  Consequently, Iheanacho said that the marketers’ huge debts of over N800 billion had also contributed to the inability of marketers to import petrol, adding that most independent marketers had closed their companies due to inability to pay their workers. He however, traced the roots of the current fuel crisis to the inability of those contracted by the NNPC to supply petrol under the Direct Sales – Direct Purchase (DSDP) arrangement to deliver, due to pricing challenges and urged the Federal Government to settle all the outstanding debts owed marketers since 2015.

In the same vein, Mr. Adewole said that although NNPC usually rely on the facilities of the marketers, including DAPPMA, Major Oil Marketers Association of Nigeria, MOMAN and independent Petroleum Marketers Association of Nigeria (IPMAN) to distribute imported products, that the corporation was unable to meet their demands.

He added that their members pay PPMC (Pipelines and Products Marketing Company)/NNPC in advance for petroleum products. But, fully paid up PMS orders that have neither been programmed nor loaded is in excess of 500,000 MT (about 800,000,000 litres) as at today, enough to meet the nation’s needs for 19 days at a daily estimated consumption of 35,000,000 litres.

The NNPC on the other hand said that it became the sole importer and supplier of petrol to the Nigerian market because DAPPMA members were unable to meet expectations despite the concession by government giving DAPPMA access to foreign exchange to import petrol at an official rate of N305 to the dollar.

On what the corporation was doing to resolve the crisis, the NNPC said that in addition to the increase in the supply of petrol since the beginning of this month (December 2017), it has also programmed to supply over 1.2 billion litres of the white products in January 2018 which will translate to about 40 million litres of PMS supply per day.

Moreover, major oil marketers expressed optimism over the current fuel scarcity, saying that it will end soon if the NNPC continues with its steady supply.  They stated that a new ferry have reportedly arrived the country and is ready to discharge fuel. 

Obafemi Olawore who is the executive director of MOMAN however confirmed on Wednesday, December 27, saying they have been receiving the product from NNPC and supplying it to consumers, adding that the fuel scarcity will gradually end as long as NNPC continues with the quantity they are supplying presently.

Meanwhile, the Peoples Democratic Party (PDP) accused the federal government of covering up their corrupt practices and lying to the suffering Nigerians. In a statement by its publicity secretary, Kola Ologbondiyan on Wednesday December 27, the party said that APC and the federal government have continued to lie to Nigerians, particularly on the real reasons behind the biting fuel scarcity as well as their exposed attempt to embezzle $1bn from the Excess Crude Account (ECA). The PDP charged the APC-led federal government to tell Nigerians the truth regarding its handling of fuel related funds, rather than dissipating its tenuous energy on name callings. The party also tasked the APC Government to speak out on reports of fraud in the oil regime whereupon 18 unregistered companies were used to lift and divert $1.1 trillion worth of crude oil in the last one year.

There is no smoke without fire. Who are we to blame among the blame game players? Who is the sincere one among them that is qualified to tell the truth? Whose report shall we accept? Why must it always be during Christmas period when movement is high? If the Federal Government cannot handle or control the excesses under its power, who will? When will there be an end to fuel scarcity in an oil producing country? Anybody who contested and is elected to any position of power should endeavor to do his or her work and prove his or her ability to handle his position, salary and allowances, and stop blaming anybody for his or her failure. Common Nigerians have suffered enough.

Brought to you by Olive Chinyere Amajuoyi

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