Around Nigeria, pre-subsidy fuel scarcity shows up
Even though the Federal Government and other stakeholders are yet to reach an agreement on the removal of fuel subsidy, the effects of the impending action are already beginning to show. Evident by the return of queues at filling stations in some parts of the country, it appears the artificial scarcity is created by the […]
Even though the Federal Government and other stakeholders are yet to reach an agreement on the removal of fuel subsidy, the effects of the impending action are already beginning to show. Evident by the return of queues at filling stations in some parts of the country, it appears the artificial scarcity is created by the looming fear of government’s decision. This has even triggered a hike in pump prices of petroleum products in some states. Signs started showing early in the week in Abuja, with long queues. The situation triggered an increase in transport fares across the FCT, while some black marketers are currently having a field day.
An independent marketer at a fuel station in Wuse Zone1 told Weekly Trust that they have sold all they had in their reservoirs. But investigations revealed that some of the marketers are hoarding the product so as to monitor the intensity of the looming scarcity, especially as the festive period approaches. Others thought it wise to monitor the Federal Government’s tone on the fuel subsidy policy, that is if will take effect from January, 1, 2002 as earlier planned.
In the FCT, commuters have been paying the price as transport fares have been hiked, especially during rush hour. Joshua Edem, a private security guard in the city center who lives in Suleja said he is suffering from the price hike. “On Monday and Tuesday, I waited at the bus stop for more than 6 hours to board a vehicle,” he said, adding that he does not know the reason why the whole situation suddenly became bad.
Edem said a lot of people feel the president deceived them during his campaign. “They basically complained that the president said fuel queues shall be a thing of the past, but here we are, just few months into the administration facing them. Some were of the opinion that the government wants to use scarcity tactics to push people into believing that the only solution is the subsidy policy.”
However, unlike in the FCT, there was no scarcity in Kaduna metropolis as motorists were seen driving into stations without queues. But reports from other parts of the state had it that black marketers are making brisk business as fuel scarcity had resurfaced. In Zaria, for instance, only two petrol stations were seen dispensing the product from PZ, down to Samaru. However, the suspension of the lifting of petroleum products by the Kaduna Refining and Petrochemical Company (KRPC) management is creating apprehension among motorists in the state metropolis.
Weekly Trust gathered that the lifting of the products was suspended early this week. Stakeholders alleged that the suspension was part of the Federal Government gimmick to advance their moves for the removal of fuel subsidy. Chairman of the Kaduna branch of the Petroleum Tanker Drivers Union (PTD), Comrade Gambo Tuge, said the management of the KRPC suspended the lifting of products early this week. “Our members were inside when the management ordered that the lifting be suspended. No reason was given but we suspect that it may not be unconnected with the plan to remove fuel subsidy. Throughout last week, we were lifting the products but now as you can see, nothing is happening again,” he said.
When contacted, the acting Head of Media of KRPC, Malam Hamisu Haruna, said product-lifting is not under the KRPC, but the PPMC.
In the Southern part of the country, investigations revealed that marketers now lift petroleum product at N63 and N64 per litre at various depots in Lagos, Warri and Port Harcourt as against N60 and N61 per litre they used to. It was further gathered that the increased is somehow responsible for the shortage of petroleum products being experienced in some parts of the country. Some petrol stations visited in Benin, capital of Edo State, were not selling fuel on the grounds that they have no products. However Weekly Trust investigations showed that the actual reason they are not dispensing was that they were hoarding the fuel, hoping that the prices would increase.
The transport manager of Conoil, Sapele road station in Benin, Frank Inneh confirmed to Weekly Trust that they have started lifting fuel at N64 per litre at Lagos depot as against the former price of N61 per litre. He said petroleum products will continue to be scares except they are also allowed to increase their retail prices to the public. He said with the new price, it will no longer be profitable to sell fuel at the old price of N65 per litre to the public. He said: “We buy at N64 per litre from the depot. What the new price regime means is that, if you purchase a 33, 000 litres of fuel you can only make a profit of N33,000, then you pay for transportation, pay your driver, fuel the vehicle as well as other logistics. At the end of the day there will be nothing as profit.”
However, supply crisis has also hit one of the oil-producing states. Supply at the Port Harcourt refinery in Eleme, Rivers State, has dropped by 75 percent. As at last Tuesday, a little over 60 trucks of petroleum products were lifted from the Port Harcourt Refinery as against the usual 300 to 400 trucks daily, confirming the drop in supply of the product. The Chairman of the Petroleum Tanker Drivers of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Port Harcourt Refinery branch, Chief John Amajuoyi told Weekly Trust that before Tuesday, at least a total of 300 to 400 trucks were usually supplied by the refinery daily. “Yesterday, we loaded over 60 trucks but before now, we used to load about 300 to 400 a day. I don’t know whether they are diverting the product. If they continue to load at this number, scarcity is bound to be experienced. Don’t forget that the 60 trucks are not for Port Harcourt alone.”
Weekly Trust was not allowed access to the Depot Manager of the Port Harcourt Refinery by security men.
A petroleum tanker, Ado Sule, said: “We are experiencing delay in getting the products now. Before now, we used to spend not more than two or three days to get the product but today I have spent eight days waiting for the product and my friend here has spent up to 15 days.”
However, in the city of Maiduguri, for the past few days, the scarcity of fuel has lingered, with many private filling stations thrown out of business. The occurrence has given many black marketers an upper hand as they made brisk business selling fuel above the approved government price of N65. A substantial number of the private fuel stations sell at around N75 to N80 per litre. A popular filling along Sir Kashim Ibrahim Way was selling fuel at the normal price, without a queue. Further checks revealed that even though the station sold a liter at N65, motorists were required to offer a token which varied from N200 to N300 before they would be allowed in.
“We normally sell a gallon of petroleum at the rate of N400, but considering the unavailability of the product in the last two days, we were forced to increase our price by N50 or N100 depending on the seller and the location,” Umar Musa, a roadside fuel seller told Weekly Trust. This slight increase in Maiduguri has not affected transportation fares as investigations revealed.
Borno/Yobe command of the Nigeria Customs Service (NCS) Area Comptroller, Compt. Muhammad M. Biu explained: “With the recent shortage of petroleum, I summoned our officials and teams at the border and briefed them on how best to stop smugglers from smuggling out petrol when Nigerians are in need of it at home. You know during dry season, everywhere seems to be a road which encourages smuggling, unlike rainy season when water logged areas force people to follow through legal routes. So far no any plot to smuggle out fuel has been discovered because we have been very vigilant.”
But the NNPC is currently attributing the queues to panic-buying and assured that it would step-up supply. The Group General Manager, Public Affairs of the NNPC, Levi Ajuonuma said complaints by some marketers that they could not lift products over the weekend due to the strike action embarked upon by staff of Petroleum Equalization Fund is false. According to him, the PEF secretary confirmed that there was no such action. But in the horizon, the queues are still growing.