Fuel Scarcity: NNPC replies petrol marketers on cause of crisis

FILE PHOTO: Fuel Queue

The Nigerian National Petroleum Corporation, NNPC, and the Depot and Petroleum Products Marketers Association, DAPPMA, on Wednesday continued the blame game over the current fuel scarcity.

On Tuesday, the Executive Secretary of DAPPMA, Olufemi Adewole, in a statement in Lagos accused the NNPC of leaving his members’ depots empty of petroleum products, while Nigerians suffered on fuel queues at filling stations across the country.

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 that DAPPMA members owned 80 per cent of the functional fuel storage facilities and retail outlets in the country.

“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,” Mr. Adewole said.

He 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.

Besides, Mr. Adewole said, although NNPC usually relied 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, the corporation was unable to meet their demands.

“Our 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,” Mr. Adewole alleged.

The statement came in the wake of allegations that the current crisis was instigated by the marketers. Some Nigerians including government officials accuse marketers of taking advantage of controlling the bulk of the fuel distribution facilities and outlets to divert and hoard products supplied by NNPC.

But, in its reaction on Wednesday, the NNPC in a statement accused DAPPMA of insincerity, describing as “very unfortunate” the association’s claim that the crisis was as a result of its members being denied products.

“NNPC wishes to affirm that it has supplied appreciable volume to DAPPMA, Major Marketers Association of Nigeria (MOMAN) and Independent Petroleum Marketers of Nigeria (IPMAN) to rid the challenges currently being experienced in the supply and distribution of petroleum products in the country,” the NNPC said in a statement by its spokesperson, Ndu Ughamadu.

“NNPC regrets that DAPPMA, which members had taken receipts of products from Petroleum Products Marketing Company (PPMC), a subsidiary of NNPC, and owe the company to the tune of N26.7 billion as at December 21, 2017, has the audacity to indict NNPC unjustifiably,” Mr. Ughamadu said.

Mr. Ughamadu said DAPPMA’s claim that the current fuel scarcity was due to the inability of the DSDP partners of NNPC to deliver was “unfounded and self-indicting.” He said many DAPPMA members also patronise the same DSDP partners.

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

On what the corporation was doing to resolve the crisis, the NNPC said 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.

“This will translate to about 40 million litres of PMS supply per day, against about 700 trucks (about 27million – 30million) litres per day that Nigerians ordinarily consumes,” Mr. Ughamadu said.

Despite the current challenges, he reassured Nigerians that there was no plan to increase pump price of petrol above N145 per litre.

“The NNPC will continue to maintain ex–depot price of N133.28 per litre, which guarantees the pump price not exceeding the N145 per litre capped by the government.

“All stakeholders are implored to support the efforts of government to bring a speedy end to the current fuel distribution challenges being experienced in parts of the country as this is not the time to play the blame game,” he said.


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  • Damian

    Marketers cannot import cos they will make fraudulent subsidy claims – simple.

  • True Cross Riverian

    As a politician in an opposition party (PDP) , I have my issues with this Govt. However, I must say that I believe in PMB and the foundation he is building for Nigeria. You can’t believe that this Christmas most people cooked with Local Rice. If you were born in the Mid 70’s and early 80’s you will remember that Uncle Ben’s Rice (general name for imported rice in those days because it had no stones and wasn’t sticky) was for privileged people. Because our imports were not so high then our money had value. My pocket money to FGC then was never above N50.I always came home with some change. IBB destroyed this country. Let’s give Buhari a chance to lay a good foundation for us the youths to build on.God bless Nigeria.

    • Paschal Charles

      NONSENSE CONTRIBUTION

    • Gary

      Yeah, right…a country whose young people under the age of 40 make up over 70 percent of its population should put its future in the hands of a 77 year old for another four years of incompetence, nepotism and sectarian bigotry.
      All because you no longer have to eat Uncle Ben’s Rice after you return home from wasting man hours queuing for petrol.

      The above is the kind of reasoning why Nigeria has been serially governed by Morons.

      • True Cross Riverian

        I appreciate your point of view

  • Ola

    These marketers are desperately trying to get back on the Subsidy Gravy Train and creating artificial scarcity is a tact but by God’s grace this one too shall pass.

    I cant wait for Dangote Refinery to come on board. How can a Petrol Station with ten (10) selling points be selling from only one and we wont have a long line of cars waiting for hours to buy fuel.

  • Gary

    No where in this and previous NNPC statements and those of government officials is an indication of short or long-term strategic plan to overcome the now cyclical disruption of petroleum products to the nation.

    Spending $4B in a futile search for oil across in North (even in the terrorist war zone), oil and gas pipelines criss-crossing the region and even a Diesel-fired power plant; these are all priority projects currrntly undertaken by the NNPC.
    But not investing in new or refurbished refineries for a surging population and demand for petrol.
    No, building a new refinery has been farmed out to Aliko Dangote and nothing must be done to scuttle adding petroleum products to his monopoly of Nigeria’s domestic economy.
    So until Mr. Dangote’s refinery comes on stream, the singsong about subsidy will continue and the message from the Buhari regime to the Nigerian people is: Tough luck, you are on your own.
    This is the CHANGE Nigerians voted for in 2015.