Fuel Scarcity: NMDPRA Acknowledges Debts to Oil Marketers as Petrol Shortage Continues

Emmanuel Addeh

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has acknowledged the debts owed oil marketers, which the middlemen say is responsible for the current scarcity in Abuja and environs.

However, the position of the marketers is in contrast to the view by the Nigerian National Petroleum Company (NNPC) which blamed the development on the last public holidays.

For over two weeks,  fuel queues had again returned in Abuja with the attendant hardship and  traffic snarls, slowing down commercial and social activities in the country’s capital.

Many roads within the city are now blocked as motorists struggle to get the product from the few filling stations that are open, as vehicular traffic stretch several kilometres as a result of the latest scarcity.

It came after a few weeks of respite, following more than three months of gruelling petrol shortage nationwide which the NNPC attributed to off-spec fuel at the time.

But in the extant situation, a statement from the national oil firm in an attempt to explain away the sufferings faced by Nigerians affected by the scarcity of the product, had described the situation as “mild”, blaming the last Muslim holiday for the situation.

In late January this year, Nigerians were confronted with similar supply disruptions, which began in Abuja, before spreading to  Lagos and  other parts of the country after  adulterated products went into circulation. The problem lasted until early April.

But in a shocking statement, the NNPC said:“ This is very likely due to low load-outs at depots which usually happen during long public holidays, in this case, the Sallah celebrations.

“Another contributing factor to the sudden appearances of queues is the increased fuel purchases which is also usual with returning residents of the FCT from the public holidays.”

However, in a release, the NMDPRA said it had taken note of concerns raised by some oil marketers over their outstanding bridging claims which the middlemen blamed for the scarcity.

The Independent Petroleum Marketers Association of Nigeria (IPMAN), had on Monday last week appealed to the NMDPRA to pay its members their bridging claims of N500 billion.

IPMAN warned that that the non-payment of the debt for over eight months had crippled the businesses of many members as they cannot transport available petroleum products.

“The resurfacing of fuel queues in Abuja is just the tip of the iceberg. Only 5 per cent of marketers are still in business,’’ IPMAN lamented.

However, the NMDPRA said the administration of bridging payment is a continuous process as hundreds of trucks load and discharge products daily thereby adding to the claims.

“Since December 2021, the NMDPRA has made several payments to marketers whose claims have been verified. So far, over N58 billion has been disbursed to oil marketers out of which about N34 billion went directly to members of IPMAN.

“We wish to stress that the total amount disbursed so far is the highest ever paid within a 6-month span by previous fund administrators, which implies that the reimbursement of marketer’s transportation differentials for petroleum products movement from depots to sales outlets is a priority to the NMDPRA.

“In addition, freight rates were recently reviewed upwards to reflect current market realities and stimulate investments in the transportation of petroleum products in the country to ensure uninterrupted distribution,” the authority said.