Fuel Scarcity: Bleak Holidays for Nigerians
If the prolonged nationwide petrol scarcity is not reined in soon, Nigerians may face even harder times as the yuletide festivities approach, writes Emmanuel Addeh.
Before now, if there was anything the Muhammadu Buhari administration prided itself in, especially in the first five years of the administration, it was the fact that it had been able to reduce disruptions in the supply of petrol to an almost negligible level nationwide. But those bragging rights have now been eroded with the perennial fuel scarcity and skyrocketing prices, particularly in areas where the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA), the industry police, does not seem to have a footprint. While supply in other states had been relatively stable before now even though retailers sold far above the controlled government prices, in Abuja, the situation has been almost chaotic since around February when the adulterated fuel episode happened.
With just intermittence of reprieve since then, spanning a few weeks or even days, residents of Abuja have had one of the most riotous years in recent times, in terms of the supply of the product.
But recently, fuel scarcity has also become an issue in several other states, spreading across Lagos, Ogun states, Warri, Edo and other parts of the country as some filling stations now sell the commodity for as much as N250 per litre.
In Abuja, although NNPC mega stations have had to work extra hours, selling at N179 per litre, getting fuel from the facilities is almost as difficult as trying to get water out of a rock, with some queues stretching kilometres and causing heavy traffic.
A CHAOTIC IMPACT
As expected, the basic principle remains that when supply of a product, especially an essential one like petrol, is constrained, all kinds of black market activities spring up to fill the vacuum. In Abuja, consumers are now compelled to tip fuel pump attendants before they can be attended to while product racketeers are having a field day selling a 10-litre gallon for as much as N4,000, meaning that a litre now costs as much as N400. The traffic snarls across the country caused by the long queues have caused untold hardship to Nigerians as transporters have hiked their fares and workers as well as businessmen spend valuable man-hours in the long lines and the traffic jams. It’s the same story in Lagos and other parts of Nigeria where commercial buses have taken advantage of the development to increase their fares, leaving commuters stranded in various parts of the states.
Like in other parts of the country, in the south-east states, prices of the product have soared with its attendant impact on prices of goods and services.
In the north, there has been no reprieve for residents of the Federal Capital Territory (Abuja) and environs, including Nasarawa and Niger as the biting petrol scarcity continues.
While many fuel stations remained shut for lack of the product, the NNPC stations which have been selling the product, have witnessed queues stretching over two kilometres at every point. At the outskirts, the few filling stations which are open sell at exorbitant amount
Scenes at Conoil, Total filling stations as well as even NNPC mega stations located at the Central Business District of Abuja have been hellish as motorists try to gain entrance to the stations without having to stay on the queues. Several filling stations, including the NNPC mega station in zone 1, Conoil and Total, opposite the headquarters of the NNPC, these days form long queues, causing traffic jams in the capital city and in the blazing sun to boot. The most hit have been those living far from the city centre as for instance, fares from Dutse Alhaji to Area 1 which was hitherto N300, is currently N600 while Dei-Dei to Berger and Wuse 2 which used to be N300 and N400 is now from N500 and above.
WHAT ARE GOVT AUTHORITIES DOING?
Since this year, mostly in Abuja, the Nigerian National Petroleum Company Limited (NNPC) and the NMDPRA have enunciated several reasons for the disruptions to supply. From the adulterated fuel to Muslim holidays to the floods that cut off some roads etc, the excuses have been multifarious as to why there is scarcity. Surprisingly, after the shortages caused by the bad fuel, and the festivities and the recent floods, which have now receded, the scarcity has continued.
“The Authority (NMDPRA) wishes to state that the fuel queues are caused by unprecedented flooding in Lokoja, Kogi State, which has submerged a greater part of the city and grounded all vehicular movements.
“This unfortunately has affected the distribution of petroleum products to the Federal Capital Territory, Abuja and environs,” stated a statement from the agency earlier, in trying to explain the situation.
As part of measures to mitigate the situation, the NMDPRA said that trucking via alternative routes was ongoing, assuring the public that there are sufficient petroleum products inland.
Furthermore, the inclement situation is continuing despite the disclosure by the NNPC weeks ago that 146 tankers (since then, more have arrived) of the product had arrived the FCT and environs.
Executive Director, Downstream of the NNPC, Mr Adeyemi Adetunji, explained that the water which had subsumed the link road between the south and the north in Kogi had started receding.
“We are pleased to inform the general public that more petroleum products trucks have started arriving in Abuja and other destinations as the flood which had earlier restricted the movement of trucks along Lokoja has receded.
“In addition, the federal ministry of works and housing has also intervened with the rehabilitation of 19 sections of the damaged Bida road in Niger state.
“Trucks have continued to arrive Suleja depot for onward dispatch even as of today. Delivery to other parts of the country is also continuing with vehicular movement northwards,” he stated at the time. But despite assurances, the challenge won’t just go away.
Acting State Coordinator, NMDPRA, in Katsina, Abdullahi Musa-Mohammed, also argued that the fuel scarcity started as a result of flooding that destroyed some roads linking Southern Nigeria, from where the products are transported to other parts of the country.
“Everyone is aware of the situation, and the queues at filling stations all started as a result of flooding. The trucks spend about a week to get to their destinations.
“You know petrol supply chain is something that once there is a delay in the chain of supply, even if it is one, two or three days, it shows. The impact of that will be felt for sometimes, that is why we are still battling with that situation.
“Our duty as federal government is to ensure that the products allocated to filling stations from depots get to the stations in time. We get manifest from the deports on daily basis and we monitor the manifest to ensure that the petroleum products are not diverted.
“We also follow the trucks to ensure that the products are discharged according to the allocated quantity,” he said.
Musa-Mohammed revealed that once a case of diversion is established, they seal the station and ask them to pay a fine of N500 per litre of the petrol diverted.
“Sometimes they complain that the truck developed mechanical fault on the way. In such situations, we first of all give them what we call demand for explanation, they give their explanations, but we know that not all the explanations are true,” he said.
He further revealed that if they query some of the marketers about the disparity in the price, they start telling stories, blaming it on expenses they incurred in the process of transporting the fuel,” he said.
According to him, they have been making efforts to see that these queues disappear completely, and would continue trying their best by monitoring the products up to filling stations.
PRODUCTS SHORTAGE
But spokesman of the Independent Petroleum Marketers Association (IPMAN), Mr Chinedu Ukadike blamed it on the delay in the arrival of product vessels, explaining that this has led to a drop in the stock sufficiency level of the NNPC.
“We normally buy our products from NNPC, private depots, and private tank farm owners and some of them are located in Lagos, Warri and Port Harcourt, knowing full well that we import petroleum products in this country and most of these products are vessel driven depots and they collect products from ships.
“I think there is a shortfall in the sufficiency they have in stock because some of the mother vessels they are expecting are just arriving. There was a little delay and some of the logistics in handling charges in the depots, so these are the issues that have truncated the chain of supply,” he said.
According to him, even if the Lokoja flood has subsided, some of the trucks are still in the depots waiting to be loaded.
Ukadike explained that most inland depots were without the product, saying it was taking longer days for trucks to move from the south to the northern parts of the country.
Immediate-past Chairman of the Major Marketers Association of Nigeria (MOMAN) and Managing Director of 11Plc, Mr. Adetunji Oyebanji, also told THISDAY days ago that it seemed there was not enough petrol supply in the system.
He said he was only able to get a little supply from NNPC at the time, adding that if that was the case for other marketers, it meant there was insufficient product in the system.
Oyebanji said: “I had little quantity in my tanks and heard others waiting NNPC to deliver. So I was only able to get some (weeks ago). So if that’s the case with other people, that means the product is not enough in the system.
“There is a certain number of cargoes you need in a week to come into Apapa. If they haven’t achieved that level, maybe that has contributed to it, but I can’t say for sure.
“NNPC will tell you they have sufficient stock, but sometimes, the stock may be on the high seas and not in our tanks. If you say you have enough stock and it’s on the high seas, we need it to be in our tanks for us to be able to distribute it. May be that is what is causing the problem.”
National Operations Controller of IPMAN, Mr Mike Osatuyi, also attributed the petrol scarcity in parts of Lagos to the unsteady supply witnessed in the past few days.
He said that as a result of the unsteady supply, depots prices had risen from N165 to N177 and N178 per litre in Apapa and its environs.
“The marketers will only sell what they buy. If the price of petrol increases, we add our transportation cost and other charges to the selling price,” he said.
The marketers argued that the approved price was not sustainable and was contributory to the scarcity of petrol in many locations nationwide.
As the problem continues to linger, likely stretching into the festive season, many Nigerians fear that in a country where many are already struggling to survive, it may just be double jeopardy if the scarcity persists.
