Nigerians may have to endure a little longer with the ongoing fuel scarcity across the country, as oil marketers have attributed the recent shortage of Premium Motor Spirit (PMS) to persistent logistical challenges.
Addressing this pressing issue while appearing as a guest on Channels Television’s Morning Brief on Monday, the President of the Petroleum Products Retail Outlets Owners Association (PETROAN), Billy Gillis-Harry, explained that oil marketers are currently facing supply constraints, meaning they are only able to distribute what they have available.
When asked to elaborate on the nature of these logistical challenges, he explained that the issue relates to the process of ship-to-ship transfer. Until a ship has received its cargo, it is unable to deliver to any of the depots. Similarly, until the depots receive their products, the retailers are unable to access these products.
Gillis-Harry said, “I think until we get our supply challenges sorted out efficiently and abundantly, we will not be able to get out of this circle.
“I believe you must have heard the NNPC’s communications director, who explained that the issues at stake are still logistics-related.
“So until they get that resolved, we may just be managing the little they bring, and give to us to distribute among our members.
“NNPCL is doing its best to bring in products bit by bit, and we can only supply what we have.”
Elaborating further on what he meant by logistics challenges, the oil marketers’ leader said, “The logistics issue is about ship-to-ship transfer. Until the ship gets products, it cannot deliver to any of the depots. And until depots have products, we, the retailers, cannot also have access to products.”
He, however, assured that marketers were in talks with the NNPCL oversupply challenges.
He said, “We have been speaking with NNPCL. We encourage them to do more, and I can assure you that they are trying their best.”
Fuel Scarcity Bites Harder as Prices Soar
Following persistent fuel shortages that have crippled transportation across Nigeria, the situation escalated over the weekend with Lagos and the Federal Capital Territory joining the northern regions in experiencing fuel scarcity.
Reports indicate that petrol prices have skyrocketed to between N800 and N1,000 per liter in some stations, leading to increased transport fares.
Amidst the crisis, black market operators have capitalized on the situation, with many filling stations running dry. While allegations of the Nigerian National Petroleum Company Limited’s debt to international oil traders were blamed for the scarcity, the company’s spokesperson, Olufemi Soneye, has dismissed these claims. However, Soneye acknowledged the common practice of credit transactions in the oil industry.
“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,” he told reporters.
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