Fuel shortages: Senate summons ministers, Oniwon, others

The Senate has summoned the Minister of Finance, Dr. Ngozi Okonjo-Iweala, and her Petroleum Resources counterpart, Mrs. Diezani Alison-Madueke, over the reappearance of vehicular queues at filling stations in Abuja and other cities in the country.

The Senate Committee on Petroleum (Downstream), headed by Senator Magnus Abe, also invited the Group Managing Director, Nigeria National Petroleum Corporation, Mr. Austen Oniwon, for the same reason.

Others expected to appear before the committee are the Managing Director, Pipelines and Products Marketing Company, Mr. Morrison Fiddi; Executive Secretary, Petroleum Products Pricing Regulatory Agency, Mr. Reginald Stanley; and the Director, Department of Petroleum Resources, Mr. Austin Olorunshola.

The committee also summoned the President, Independent Petroleum Marketers Association of Nigeria, Alhaji Abdulkadir Aminu, and the Executive Secretary, Major Oil Marketers Association of Nigeria, Mr. Obafemi Olawore.

Abe said the invitees would be required to explain the reasons for the current spate of scarcity of petroleum products in the country, in spite of the guarantees offered by the NNPC.

The scarcity, which has affected the Federal Capital Territory the most following the partial removal of subsidy on petrol, has made black market sale of petroleum products to flourish.

The invited officials are expected to appear before the committee at noon today.

Lagos, the nation’s commercial nerve centre, and neighbouring Ogun State have started experiencing scarcity of petroleum products with noticeable queues in many filling stations that had petrol to sell on Wednesday. Some others did not dispense the product.

It was gathered that the scarcity was caused by the inability of the Federal Government, through the NNPC, to meet local demand for petrol because the major oil marketers and private importers had scaled down importation following the uncertainties surrounding the payment of subsidy after the sector was partially deregulated on January 1, 2012.

It was also learnt that the face off between the Lagos State Government and the National Union of Petroleum and Natural Gas Workers over the indiscriminate parking of petroleum product tankers at undesignated points might have contributed to the supply hitches being currently experienced in the state.

THE PUNCH had earlier this month exclusively reported that the country would be witnessing cyclical fuel shortages in the coming weeks due to the decision of importers to limit their exposure to the uncertainties that had characterised the sector since the January 1 subsidy withdrawal announcement and the nationwide protests that followed.

The nation, according to the PPPRA, consumes 35 million litres of petrol daily, with 50 per cent of the volume being supplied by the major oil marketers and other private importers. The NNPC supplies the balance.

The President, NUPENG, Mr. Achese Igwe, told one of our correspondents on Wednesday that the scarcity was now being felt in Lagos because of the huge demand for the commodity in the state. He added that the ongoing discussion between the union and the state government was not to blame for the scarcity.

He said, “I don’t think the discussion with the government of Lagos State is the issue; it is the inability of the Federal Government to make sure petroleum products are available for now.

”But I think there is a more serious issue instead of that, but if Lagos State insists on its position, then the situation is going to get worse.”

Also speaking on the development, the Chairman, Lagos Zone, NUPENG, Mr. Tokunbo Korodo, said, “It is clear that the amount of fuel being supplied by the government is not enough for the country.

”Though there may be some level of panick-buying in Lagos because of our discussions with the government, the fact is that we are not contemplating going on strike over that; however, the possible cause of the mild scarcity in the state is that the Federal Government is unable to meet demand.”

A top source among the marketers, who asked not to be named, said, “The fears and uncertainties surrounding the payment of subsidy and the many issues with last year’s budget with respect to subsidy have continued to discourage marketers from fully importing petrol.”

”We hope that things will come to normal in due course, especially when the subsidy probe and other issues are resolved.”

THE PUNCH had reported that NNPC had increased its petrol imports to try to cover the gap created by the drop in imports by the marketers, but analysts stressed that despite the corporation’s efforts, distribution bottlenecks might make it impossible for the product to be readily available nationwide.