The queues for Premium Motor Spirit, popularly called petrol, continued on Friday in Abuja, Niger, Nasarawa, Kaduna, and many other states as the Federal Government threatened to withdraw the operating licences of oil marketers involved in PMS hoarding.
On Friday, long queues of vehicles were observed at various fuel stations across the Federal Capital Territory, with many stations closed due to a lack of supply.
In the Kado axis of Abuja Municipal Area Council, some fuel stations, including AA Rano, were selling petrol at N849/litre, while others remained shut.
The petrol scarcity led to frustration among motorists who spent several hours in queues to get the product.
A taxi driver at an NNPC station, who gave his name as Matthew, expressed his concerns, saying, “I’ve been experiencing a lot of challenges due to the scarcity. It’s been a real headache. When you finally get the money, you’re supposed to spend it with happiness and joy, but instead, you’re spending it with sadness.
“As a taxi driver, I’m struggling to make ends meet. I have to work one day just to get fuel and another day to do my actual job. It’s a constant struggle. We’re facing challenges just to survive, and it’s not giving us any joy. We’re struggling in our own country, and it’s frustrating.
“I implore the government to look into this issue and find a solution. We need a better way forward to bring joy and prosperity back to our lives.”
Reacting to the widespread queues across the country, the Federal Government through its Nigerian Midstream and Downstream Petroleum Regulatory Authority, declared that filling stations that hoard petrol and those selling to black marketers in jerrycans would have their licences withdrawn.
Speaking during an inspection tour in Abuja, the Executive Director of Distribution Systems, Storage and Retailing Infrastructure, NMDPRA, Ogbugo Ukoha, warned filling stations to desist from compounding the fuel supply crisis in Nigeria.
In a video clip shared by the regulator during an inspection at one of TotalEnergies filling stations, Ukoha told the managers of the outlet that “you need to take this (warning) very seriously. If you need security reinforcements, speak to your management.”
He said retail petrol stations should stop encouraging the sale of products to black marketers who dispense the products in jerrycans.
This, according to Ukoha, posed serious safety concerns and should be discontinued.
Also on its X handle, the downstream regulator said it had declared war against the illegal sale of petroleum products.
“NMDPRA embarks on a war against the illegal sale of petroleum products, especially PMS in jerrycans. Filling stations are advised to desist from servicing illegal peddlers; failure to do so would result in the suspension of retail licences,” the agency stated.
Meanwhile, it was gathered on Friday that NNPC was still struggling to import enough petrol into Nigeria.
It was also learned that this development prompted depot owners to sell petrol to marketers at higher prices. The marketers are eager to buy the product at any price, knowing that Nigerians in desperate need of fuel will still patronise them.
On July 27, NNPC spokesperson, Olufemi Soneye, said the fuel scarcity witnessed in Abuja and Lagos was due to a hitch in the discharge operations of a couple of vessels.
“The NNPC Ltd wishes to state that the tightness in fuel supply and distribution witnessed in some parts of Lagos and the FCT is a result of a hitch in the discharge operations of a couple of vessels,” Soneye had explained
He stated that the company was working around the clock with all stakeholders to resolve the situation and restore normalcy in operations.
However, the situation has yet to improve despite Soneye’s promise over three weeks ago.
Also, recall that on July 8, 2024, NNPC said the fuel crisis was caused by bad weather. Soneye had said the fuel queues were a result of the disruption of ship-to-ship transfer of PMS between mother vessels and daughter vessels, caused by thunderstorms.
The adverse weather conditions, he added, also affected berthing at jetties, truck load-outs, and the transportation of products to filling stations, disrupting supply logistics.
He maintained that due to the flammability of petroleum products and in compliance with Nigerian Meteorological Agency regulations, it was impossible to load petrol during rainstorms and lightning.
“Adherence to these regulations is mandatory as any deviation could pose a severe danger to the trucks, filling stations, and human lives. Similarly, the development was compounded by consequential flooding of truck routes, which has constrained the movement of PMS from the coastal corridors to the Federal Capital, Abuja,” he added, saying loading had commenced at the time.
A report by Reuters revealed earlier that the state-owned energy firm was indebted to some of its suppliers. Reuters reported that Nigeria’s debt to PMS suppliers had surpassed $6bn, doubling since early April as NNPC struggles to cover the gap between fixed pump prices and international fuel costs.
According to the report, the company had not paid for some January imports, and the late payments amounted to $4bn to $5bn. Under contract terms, NNPC is meant to pay within 90 days of delivery.
“The only reason traders are putting up with it is the $250,000 a month (per cargo) for late payment compensation,” one industry source told the international news agency.
The report stated that two suppliers had already stopped participating in recent tenders after hitting self-imposed debt exposure limits to Nigeria, meaning they would not send more petrol until they received payments.
However, the NNPC denied the report.
“False. Did they name the marketers they claim we supposedly owe? Let them name them,” Soneye told The PUNCH in July.
However, it was observed that petrol persisted on Friday in major cities, especially in the North.
Soneye did not answer calls to his phone, nor did he reply to messages sent to him by one of our correspondents on reasons for the persistent fuel queues.
Operators said on Friday that NNPC, which is the sole importer of petrol, could not supply enough of the product for the country since last month.
Different sources confirmed that the depots were out of stock and were awaiting fuel from vessels that had yet to berth at the jetties.
Depot operators said some of their colleagues are now selling the product at higher rates, as marketers are ready to buy.
“There is no improvement at all. Even most depots around Apapa jetties are out of stock, waiting for vessels to deliver to tanks,” an operator told our correspondent anonymously due to lack of authorisation to speak on the matter.
A marketer, who did not want to be named due to the sensitivity of the matter, disclosed that the product is available in a few depots at high rates.
“Marketers can go to any length to buy at whatever cost, as there is a market to sell it. If the depot gives it for N700/litre, they will rush to buy and sell at about N800/litre. That is why the pump price keeps rising,” the source disclosed.
The National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, stated that marketers are still waiting for the NNPC to supply sufficient fuel.
“No hope on fuel scarcity yet. Whatever NNPC brings is what marketers will push out. There is a shortage in supply. We are still managing whatever we have,” Fashola stated.
Marketers raise prices
Petrol prices hovered around N1000 and N1,050/litre on Friday in Abakaliki, the capital of Ebonyi State.
There were long queues across various filling stations in Gombe State.
Bovas, Conoil were some of the major marketers that sold petrol in the state on Friday. Findings showed that stations with fewer queues sold petrol at N950/ litre.
In Katsina, some filling stations that previously sold for N830/litre increased the price to N900, N930, and N1000 as of Friday.
A random survey of petrol stations within the city of Jos in Plateau State showed that the petrol prices ranged between N900 and N950 while the retail outlets of the NNPC continued to sell the product for N670/litre.
The fuel crisis in Yobe State worsened on Friday as most filling stations in Damaturu and surrounding areas remained closed, exacerbating the situation caused by the recent surge in fuel prices.
The Branch Secretary of the Independent Petroleum Marketers Association of Nigeria and National Association of Road Transport Workers in Yobe State, Ahmed Saje, said petroleum was sold at between N900 to N1000/litre.
The fuel scarcity in the Kaduna metropolis and its environs continued unabated, causing untold hardship to motorists and other road users on Friday.
Despite efforts to address the issue, the situation remained dire, with long queues and fuel unavailability plaguing the city.
A visit to the NNPC mega station in Barnawa, Southern Kaduna, on Friday, revealed a dismal picture, with long queues and no fuel in sight. The management of the station did not dispense fuel for customers, leaving many stranded.
Residents of Sokoto State expressed their frustration as the price of PMS rose to N1,000/litre.
The level of fuel queues in Bauchi on Friday worsened as many filling stations remained closed.
- Additional reports by Edward Nnachi, Tunde Oyekola, Chima Azubuike, Faith Awa Maji, James Abraham, Ahmed Amshi, Godwin Isenyo, Animasahun Salman, and Umar Sani
