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Scarcity of petrol hits private depots in Lagos

By BusinessNews Staff on April 29, 2015

There are strong indications that a nationwide scarcity of petrol is imminent as all the private depots in Lagos were at the weekend hit by scarcity of the product, raising concern on the ability of the Nigerian National Petroleum Corporation (NNPC) to sustain importation to bridge the current supply gap, THISDAY has learnt.
THISDAY’s investigation revealed that none of the depots that belong to the private marketers had petrol at the weekend as all the products in some of these depots belong to the NNPC, fuelling speculations that the private marketers had stopped importation even before they issued a threat to that effect at the weekend.

It was also learnt that the vessels that discharged products into these private depots at the weekend were imported by the NNPC.
For instance, the vessel that berthed at the Petroleum Wharf Jetty at Apapa, OCEAN WARRIOR was meant to discharge products to the major marketers – Oando, Forte Oil, Mobil Oil, Total, Conoil and MRS.

THISDAY gathered that Oando was the first major marketer loading products from this vessel as at the our correspondent visited PWA at the weekend.

Another NNPC vessel, MT BREEZE, which berthed at Bulk Oil Jetty discharged about 12,000 metric tonnes of products into the Aiteo Depot before discharging about 5,000 metric tonnes for NIPCO Plc.

The products, it was learnt, were loaded by marketers with NNPC tickets as the corporation was said to be primarily concerned about ensuring sustained supply to its mega filling stations and other retail outlets across the country.

Investigation, however, revealed that there was a standing instruction by the NNPC that all the trucks that loaded products brought in by MT BREEZE must head to Suleija to quickly stop the queues in filling stations in Abuja and environs.

The major marketers under the aegis of the Major Oil Marketers Association of Nigeria (MOMAN) at the weekend threatened to stop importation over unpaid N350 billion subsidy claims.

The threat followed an earlier letter dated April 13, 2015 and addressed to the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo Iweala, where MOMAN told the minister that the financial institutions had put a hold on extending further import credits lines to its members as a result of the unpaid subsidy claims.

The letter also stated that marketers are unable to finance imports out of their own cash flow and also not able to meet other relevant obligations like payment of transporters due to cash flow constraints from long over due payment.
The marketers had warned that if the matter is not promptly addressed in the very immediate future, it members would be forced to streamline overhead costs and their work force may be impacted.

MOMAN also appealed to the Ministry of Finance to pay authorised marketers that has been cleared by PPPRA with Sovereign Debt Notes (SDN) all outstanding principal sums.

MOMAN also appealled to the ministry of finance to ensure that all ancillary burdens such as interest and forex differential incurred by the marketers as a results of the late payment be immediately reimbursed.

[ThisDay]

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