Fuel crisis may reach new year

There seems to be no end in sight to the lingering fuel crisis and its attendant long queues that have become a permanent feature in petrol stations across the country for over one month now. Long fuel queues which had subsided in Lagos, the hub of petroleum supply and distribution to other parts of the […]

There seems to be no end in sight to the lingering fuel crisis and its attendant long queues that have become a permanent feature in petrol stations across the country for over one month now. Long fuel queues which had subsided in Lagos, the hub of petroleum supply and distribution to other parts of the country, resurfaced on Wednesday with many filling stations closing by 2p.m. in the afternoon.

IPMAN President, Alhaji Aminu Abdulkadir, told our correspondent that there were shortages of fuel supply to marketers. In Abuja and other parts of the country, the situation is the same. This has worsened the condition of motorists and commuters who have been coping with the general hardship in the country and the situation is not helped by the trading of blames between operators in the sector who are supposed to find lasting solution to the problem.

The Nigerian National Petroleum Corporation (NNPC) accused the Independent Marketers Association of Nigeria (IPMAN) of hoarding the product and creating artificial scarcity by asking their fuel attendants to use one or two fuel nozzles to sell fuel to customers in a filling station that has up to six to eight nozzles. On the other hand, the Independent Marketers are accusing the NNPC of rationing the product in order to sneak deregulation through the back door.

NNPC’s spokesman, Dr Levi Ajuonuma, said there is nothing like rationing in NNPC. “In the oil and gas industry, there is nothing like rationing. You either have the products or you don’t. We are not distributing electricity products where you have terms like load-shedding and all that. We have mentioned consistently with incontrovertible evidence that the products are there.

“We have pointed out that the refineries and pipelines are not working because of vandalism and the setback we suffered in the Niger Delta. We are now trying to repair the pipelines so that the Kaduna and Warri refineries can resume production. The products are being imported, so how do you measure our efficiency?

“If you look at every maritime record of ships coming into Nigeria and you compare with metric tonnage of these ships, you have seen the consumption. As of yesterday, we have over 20 ships in our yard waiting to discharge products for Nigeria,” he said.   

He also said the scarcity of fuel being witnessed across the country is an artificial creation by marketers and other stakeholders in the industry. “Every challenge we have in the availability of products is man-made. It is either tanker drivers are on strike, pipelines vandalised or marketers hoard products and ask their fuel attendants to use one nozzle to sell instead of their installed capacity of six or eight as the case may be.

“Ask the Independent Marketers that are accusing NNPC of hoarding products when last they imported products into the country having been given licence to do so by the Petroleum Products Pricing and Regulatory Agency (PPPRA)? I appeal to marketers to stop putting unnecessary hardship on the citizens,” he appealed.

On the issue of acquiring petrol stations across the country to ease the distribution of products, Ajuonuma said the process is ongoing. “The process is ongoing. It is actually a partnership between NNPC and private station owners who are willing to lease to NNPC for a long time which we hope to use to get a greater market share in terms of the supply of products to Nigerians. The survey is ongoing and some stations have been identified and discussion is going on,” he said.

IPMAN’s spokesman Alhaji Danladi Fasali, said as far as marketers are concerned, there is no product. “If the NNPC said there is product, why are there queues in Lagos? Remember that 80 percent of the product supply comes from Lagos. If the product is available, you have to see it in Lagos first. So there is no product availability. The festive period also contributed because of panic buying and the fact that there is also the issue of ships hanging in the high seas without being able to discharge their products. Even in Warri and Port-Harcourt refineries, out of the 18 installed fuel loading arms, it’s only four that are working. Why?” he queried.

On the issue of marketers not importing in spite of the licence given to them by PPPRA, he said they just got the licence three weeks ago. “They just gave some 15 of our members three weeks ago and the banking crisis has not been helpful, because we are not getting credit. Only one or two marketers have placed an import order and it’s not going to come in one or two weeks,” he explained.

From the ramblings between NNPC and marketers, it is obvious that it will take some time before the long queues disappear from major cities across the country.

Abuja

The fuel crisis has turned out to be a source of great concern to almost everyone in the Federal Capital Territory. A look across most fuel stations shows that the situation seems to be on the increase on a daily basis. Some motorists who spoke to Weekly Trust said the situation is becoming very terrible and turning out to be one big nightmare.

“It is only in Abuja that this fuel situation seems to be very persistent and the Federal Government is doing nothing about it, because it does not in any way affect them. It is we the common masses that have to bear the whole pain of this unfortunate situation. I have never seen a country as unorganised as ours even those countries that do not produce crude oil do not have to spend up to 10 minutes in their fuel stations before they get their vehicles refilled.

“But in this country called Nigeria, ours is a different case altogether. Can you imagine after queuing up for several hours, we have to pay N300 at the gate before we can enter the fuel station to buy fuel? Tell me, this is a country that spends billions of dollars on paper contracts everyday and even talking of making the poor masses to pay more taxes, more taxes for what? This is simply absurd and unfortunate, very unfortunate indeed,” said Anthony Mba, an accountant who was at a fuel station to buy fuel.

Black marketers have also cashed in on the opportunity to make fast money out of the situation as a gallon which is four litres now sells for as high as N800. “It is even better now as some days back, I remember that I bought 10 litres for N2,500. Tell me, where is the leadership in the country as even in front of the NNPC Towers, you’ll find these black marketers doing their business?

“So in such circumstances, who do you blame as they very freely do their thing right in front of the NNPC Towers? To me, the whole thing is just a set-up. If not, how do these so-called black marketers get the fuel they sell to the public? In this country, we still have a very long, long, long way to go. It is just by the grace of God that we’ve been surviving,” said Hajiya Fatima Ahmed.

Fuel attendants are not left out of this opportunity of making fast money as they have also cashed in on the situation to augment their salary through the pathetic situation. In the course of trying to buy fuel, an attendant asked one buyer to pay an extra N500 if he wanted to fill up his tank or he’d be given only the 10 litres they give every buyer. The buyer complied.

When confronted why he asked for that amount, this was his reply, “We have no choice in this case as we are also humans and we have been standing here since morning dispensing fuel. It is unlike the period when we just serve two or three vehicles and we take a rest before another motorist comes to buy fuel. Look, we have to also cash in on the opportunity to augment our meagre salary.

“Oga, if only you knew how much our take-home pay is, you would not blame us. After all, the black marketers are making business out of it and no one is blinking an eyelid, so what is sauce for the goose is also sauce for the gander. So if you need your tank to get filled up, you will have to pay for it; if not, we’ll dispense only 10 litres,” the attendant at one of the filling stations in Area 11 concluded, ignorant of the fact that a journalist had just had the information first-hand.

Though most station managers declined to make any comment on the issue, the one who spoke under the condition of anonymity said, “ I am not aware of some of these allegations you have pointed out, but I do know that whenever we have fuel, we do dispense and do not collect any money before you can go in.

“But as you know, being in Nigeria, you can never have things always done the right way as we normally have people who try to beat the queue because they are in positions of authority in the society and they threaten us if they are not given fuel in their cars and gallons.

“To be sincere with you, I always dread these periods because it is always very challenging and difficult trying to get people to obey common rules and laws.  Regarding our hoarding fuel, we do not in any way hoard fuel. Why should we in the first place hoard the fuel if we have? We are in the business for money, so why hoard it? Will hoarding it bring the desired money for the business? We are just being unjustly accused instead of the ones creating the artificial scarcity. The Federal Government is to blame for all that is happening and not us,” the station manager stressed.

With no one willing to take responsibility and everyone trading blames, the big questions ordinary masses are asking is: for how long are Nigerians going to have to put up with this uncalled for situation?

Borno

The prices of petroleum products in Borno State, like elsewhere, now vary. The NNPC Mega Station in Maiduguri metropolis sells a litre of petrol at N65, diesel at N103 and kerosene at N50, while major marketers sell petrol at N65, diesel at between N115 and N120 per litre. Independent petrol stations sell within the range of N85 and N90. In other parts of the state, which is dominated by independent marketers, petrol is sold from N85 and above. However, kerosene is mostly not available in all the filling stations and commuters who patronise the mega and major marketers’ stations queue for hours and are oftentimes unsuccessful. At the outskirts, sachet water vendors are also cashing in on the opportunity to make brisk business, selling cold sachet water at the price of N10.

Not less than 70 trucks transport fuel by road from Port Harcourt to Borno State daily, yet the majority of filling stations remain closed. Residents are of the opinion that the filling stations have products but refuse to sell to the public. This reporter’s visit to the NNPC depot in Maiduguri revealed that trucks loaded with petroleum products were waiting to be cleared.

Views about the scarcity and the planned deregulation differ among residents. Mallam Ahmed, a commuter bus operator, thinks the scarcity is as a result of a gap in the supply and distribution chain. According to him, “The products are diverted, and sometimes when they get to filling stations, the station managers refuse to sell to commuters. They hoard and sell to black marketers to make more profits,” he averred.

Evidently, the newly-devised distribution pattern by the NNPC with the conversion of choice independent filling stations into mega stations, which have more dispensing pumps and space, is yielding fruits. It has provided a reliable distribution chain. “We just received supplies of two trucks – one 40,000 litres and the other 33,000 litres which are sold at the official pump price of N65 per litre.

Some residents of Maiduguri are of the view that the proposed deregulation has created more scarcity which is making life unbearable for the average Nigerian. For instance, an independent petrol station operator thinks the cost of transporting petroleum products waived as subsidy to marketers through the NNPC which hitherto helped to cushion and reduce cost also ensured constant supply.  If withdrawn as proposed by the deregulation process, profit margins will be minimal and that would encourage sharp practices, the manager said. Right now, the black marketers are having a field day selling a gallon at between N480 and N500. Umar, a black marketer, said, “Retailing petroleum products is my only source of livelihood. It is the only trade I know. How else am I supposed to feed my family?” he asked.

Sokoto

Sokoto has continued to witness shortage of fuel with the price of the product ranging from N85 to N110 per litre at the independent marketers filling stations. A gallon of the product also sells at between N550 and N600 at the black market.

Head of the Department of Petroleum Resources, DPR in Sokoto was not available for comment, but a reliable source at the office told Weekly Trust that most marketers were not bringing the product into Sokoto.

About 200 independent marketers are said to be in Sokoto while there are five major marketers, but the source said, “Only NNPC Mega Station and one or two major marketers bring the product. Even among the major marketers, it is only Oando that supplies constantly while others are irregular.

“Others are buying from black market and they are the ones DPR is battling to make them sell the product at controlled prices. This is where we have the problem,” he said.

The chairman of Independent Marketers Association of Nigeria, Sokoto, Alhaji Sule AP, confirmed that they are having the problem of shortage. “We have little supply from the depots. Some of our marketers are buying it from the independent marketers’ depots. We are not having any supply from NNPC. We are only getting supply from the private depots, Netcom, Emirate, Zenon and a few of them around who are able to bring the product to the country. Whenever our people go to get supply, more emphasis is given to the FCT. Only those with filling stations at FCT are getting the supply of the product frequently,” he said.

Commenting on the sale of petroleum above the approved pump price, he stated, “When we said we are not getting the product from NNPC, it is not possible we sell it at the regulated price”.

He added, “Even the transport they said they are giving us, it takes long before they pay. You will see somebody for one year who has not collected a kobo from the Petroleum Equalisation Fund.”

Commenting on the issue of deregulation, the chairman said, “Before the deregulation, let the Federal Government put everything in place, like our refineries. We are having a lot of problems going to Lagos from the North to South. We will be cheated. People in this part will be cheated because of transportation because the cost of transportation would be built into the price.

“So whatever the price, there are the additional transportation fees, but if our refineries are in order, then we would have no problem because we could go to Gusau depot, for instance, and get the product easily,” he said.

The independent marketer added, “So that is why we are not in support of the deregulation for now. Let us get ready for it. The refineries should be in shape. There should be security in our pipelines while sending the products.”

He stressed, “When we have the product close to us, there would be no problem and I am sure the price would be lower than we are expecting.”

Kano

The persistent fuel scarcity in Kano has marred activities for the past weeks as long queues in filling stations have continued to be the most common sights as only black market operators are having a field day, with jerry cans and gallons displayed on major roads and streets.

The scarcity is no longer a new phenomenon for consumers of petroleum products in the state. The people have been grudgingly coping with its attendant hardship. Allegations of diversion by some marketers of the products have always been made, but Independent Petroleum Marketers Association of Nigeria (IPMAN)’s administrative Secretary, Ishaq Usman Jumana, thinks otherwise. He told Weekly Trust that, “The NNPC has not given enough fuel. They told us they have fuel for 40 days and yet we don’t see fuel in Kano. The problem lies with the pricing of the product and its availability, because as the only place we get the product is Lagos and have to wait for their turn.

“Some marketers were caught between the crisis of private depot owners and importers and the banks. These private operators were indebted to banks and monies deposited to their accounts were held,” he alleged.

Ishaq suggested that other options could be exploited to alleviate the problems, that is, by letting them to sell at a deregulated price. He explained that price stability depends on the availability of the product in the market.

The depot manager at the NNPC depot in Kano, Aliyu Maikano, refused to elaborate on the issue, saying that his superiors are in the best position to comment. He, however, argued that there is fuel everywhere in the state.

The Department of Petroleum Resources in Kano was also not willing to comment on the crisis. The staff explained that the controller who was the one to speak on the matter was absent.

Plateau

In Plateau State where there used to be a steady supply of fuel for the better part of the last two years, the situation suddenly took a turn for the worse around November, and since then, the problem has persisted.

Motorists have to make do with black market operators for their fuel supplies. The black marketers have jerked up the price of the commodity and charge between N97 and N120 for a litre of fuel. The situation has led to a slight increase in the fares commercial vehicles charge, especially commercial motorcycle operators who have done an upward review of the fares they charge passengers.

He added, “For instance, if as a marketer you want to buy the commodity and you are based in Jos, you have to get a ticket from Jos depot and then get a draft at the same time before you proceed to the uploading stations in, say Lagos. This process alone can take up to ten days before you can be certified. So you see, these alone are enough barriers to cause lack of the commodity in circulation,” he said.

He further explained that the process will be followed with further rigorous process at the NNPC where one’s depot supervisor would struggle to ensure that a marketer’s truck gets the fuel. “The fact that a marketer’s depot supervisor will have to continue with the struggle at the available NNPC stations to get one’s truck loaded is another difficult stage that causes non-availability of fuel in the market, which takes up to two or three weeks. So tell me, how can there be fuel for people to buy when we are experiencing this kind of trend?”

But some motorists interviewed by our correspondent have a different view on the whole issue as expressed by one Samuel who preferred not to mention his surname as he accused fuel stations of hoarding the fuel. “The reason why we are not seeing an end to this fuel scarcity is because fuel stations are hoarding the commodity. I have seen it severally where tankers of fuel were offloaded in some stations and by the time you join the queue hoping you will get a refill, they will tell you it’s finished after an hour or two,” he said.

Balarabe Isa, a commercial motorcycle rider who shared a similar view expressed by Samuel said, “Sometimes you have to bribe fuel attendants before you can get the commodity”.

Asked why they think fuel stations are hoarding the commodity, both Samuel and Isa agreed that it is because the government is trying to regulate the oil sector “that is why they are hoarding the commodity, because they want to sell it at their preferred price,” added Samuel.

However, Gabasawa argued that there is no reason why stations have to hoard fuel simply because the government is trying to deregulate the oil sector. “It doesn’t make sense at all. What is the function of the DPR who go round to ensure that the commodity is not hoarded as claimed? They ensure that no marketer is allowed to do such,” he said.

On the way forward, Gabasawa opined that, “The only way to end this fuel scarcity is to repair our refineries. By doing that, the refineries will then be able to supply all the commodities across the country, and once we do that, we will see an end to the scarcity of DPK (kerosene), PMS (petrol) and AGO (gas),” he said.

Kaduna

The fuel situation is improving in Kaduna as the long queues have shortened. “There is no more scarcity”, an official with a major marketer said to Weekly Trust on Thursday. According to him, the price of Premium Motor Spirit (PMS), as petroleum is technically called, ranged from between N70 and N72 per litre, but at the peak of the scarcity, the product sold at between N100 and N120. An official of Ali Akilu Way, Unguwar Sarki Oando Filling Station, Baba Umar, confirmed as much. About 80 Kaduna-bound trucks, he told Weekly Trust, had lifted petroleum products from Lagos and the over two million litres of petrol is enough to go round Oando Filling Stations across the state. At the Kaduna Refinery and Petrol Chemicals, KRPC, the public relations officer was attending a workshop when our correspondent visited on Thursday, but an official confirmed that there are enough products for the Northern market. He blamed oil marketers for hoarding the product and causing artificial scarcity.

Another dealer who has worked with a major marketer for 11 years as depot supervisor and operations manager blames both NNPC officials and major marketers for the present artificial scarcity, especially at the end of the year. He accused the top management of what he referred to as “off allocation” where they make oil allocations to themselves. “Similarly, the major marketers pull at all stops to frustrate the repair of the refineries, slowing down production or reducing NNPC supplies for a certain period until their own stock is exhausted,” he said. All this, while the ongoing crisis marches on towards 2010.