The delay by the Petroleum Products Pricing Regulatory Agency (PPPRA), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), in releasing the first quarter allocation for petrol to marketers, has triggered another round of fuel agony for Nigerians.
The delay in the release of the fuel import allocation by the PPPRA was said to have made marketers handicapped in importing the product on time. The allocation, which was expected in January, was released late last month. The oil marketers had submitted their applications since last year.
This delay has in the past one week, unleashed a fresh round of scarcity across the country, the first in nearly two years, consequently rubbishing the federal government’s often touted credential of ending fuel scarcity in the country.
Amid the scarcity, speculations from numerous sources suggest that besides the delay in the allocation to importers, the other possible reason that the scarcity resurfaced is that importers are alleging that they are now being forced by the PPPRA to pay additional N2 cost per litre of petrol, which they are at the same time trying to pass on to the consumers.
The Major Oil Marketers Association of Nigeria (MOMAN) had before now cautioned the Federal Government over the looming fuel scarcity in the country, on account of non-approval of importation allocation of petrol for the quarter.
Many parts of the country experienced scarcity of the premium motor spirit (PMS) otherwise known as petrol over the weekend.
The scarcity of the product went from light to intense in Lagos at the weekend, with most stations not selling, claiming to have run out of the product. Long queues sprang up in many filling stations in different cities of the federation.
BusinessDay checks on Monday revealed that the roadside petrol vendors known as black marketers are still having a field day, as many of the filling stations were not selling, while those selling had long queues.
Commuters in Lagos and other parts of the country have expressed bitterness over the sudden increase in transportation fares triggered off by the acute fuel scarcity.
In Lagos, the commercial nerve centre of the country, the situation has caused a hike in transport fares to destinations within and outside the state. For instance, transport fare from Ketu to Ojuelegba on Monday increased from N150 to N200, from Ojuelegba to Apapa, it was N200 as against N100. Transport fare from Lagos to Ibadan also increased from N1,500 to between N2,000 and N2,500.
Transporters who reportedly had to buy petrol in the black market for between N150 to N250 per litre, increased transport fares to be paid by passengers, resulting in huge crowds of commuters at bus stops, and fuelling gridlocks on the roads. The official price of petrol is N97 per litre.
BusinessDay learnt that the NNPC has however agreed to give a larger part of what it has to marketers, as the suppliers of last resort.
Obafemi Olawore, executive secretary of the Major Oil Marketers Association of Nigeria (MOMAN), said that the NNPC had offered to give marketers two ships of about 37,000 metric tonnes, amounting to about 50 million litres. He added that one of the marketers would bring in 22 million litres this week and others would follow next week.
“NNPC will begin to give the marketers today (Monday) and it is hoped that the situation will be better by weekend.”
Some motorists however say that it appears some filling stations have adjusted their pumps and are dispensing less than fair measure. The situation has led to hoarding and black market sales.
The reasons some of the dealers gave for hiking the price are that the ex-depot price has jumped up from N91.50 to N95 per litre. So also have other ancillary costs, increasing the cost of petrol above N100 per litre, they said. They claimed that the union fees on a litre of the product, which was 30 kobo, now hovers around 50 kobo and that transport costs have likewise gone up.
Olawore had warned that the current depletion rate in stock level of fuel at the depots was high and needed to be replenished urgently. “MOMAN depot at Apapa, which controls about 33 percent of national demand, had very little stock to push out for sale. Some major oil marketers in the country had totally run out of stock.”
