Fuel Scarcity Looms as NNPC’s Jetty Fire Disrupts Supply to Major Marketers

Queues of vehicles are gradually returning in some filling stations in Lagos as the fire that gutted the Apapa PWA loading jetty belonging to the Nigerian National Petroleum Corporation (NNPC) has disrupted direct supply of imported petrol to the depots of the major oil marketers, it has been learnt.

The Group Managing Director of NNPC, Dr Maikanti Baru, told journalists during the inauguration of NNPC’s Ultra-Mega Filling Station in Sagamu, Ogun State at the weekend that the corporation had in its reserve, one billion litres of petroleum products to serve Nigerians during the Christmas period and till end of the year.

But it was gathered that distribution challenges faced by the NNPC have created scarcity of petrol as only eight out of about 35 functional depots in Lagos had product on Monday.

A market survey conducted by THISDAY showed that the eight depots were selling product at ex-depot price of between N140 and N143 per litre, against the approved government’s ex-depot price of N133.28 per litre.

The Independent Petroleum Markers Association of Nigeria (IPMAN) had at the weekend accused the NNPC of supplying petrol to only the depot owners at coastal price of N117 per litre, only for the depot owners to sell to the independent marketers at ex-depot price of N133.28.

IPMAN also threatened to shut down over 900 filling stations in Lagos and Ogun stations by December 11, if the NNPC continued to undersupply petrol to its members.

The tightening fuel supply, it was learnt, stemmed largely from the Apapa jetty fire incident, which affected the pipelines that transport product from imported vessels to the depots of the major marketers, who depend on NNPC’s imported products.

A source close to the jetty, which is owned by the NNPC but operated by the major marketers, told journalists that the fire affected the integrity of the pipelines that supply product from imported vessels to the depots of the major marketers.

“The NNPC had promised that they would complete the repairs within few weeks but up till now, they have not completed the repair work and the market is beginning to feel the impact of the fire. Major marketers now rely on throughput with other depot owners and this means additional cost. NNPC said that they are still running integrity tests on the pipelines,” he said.

The refusal of most private marketers to import petrol as a result of the low margins arising from challenges of accessing forex and the high cost of the product at the international market, also aggravated the situation

There were queues in many parts of Lagos yesterday but the pump price was still N145 per litre.

No fewer than four people lost their lives with several others severely injured when the jetty, which is operated by the major oil marketers caught fire in September when hoodlums tampered with the manifold, which is the connecting pipe to the vessel, to scoop fuel.

Though the NNPC had assured that the damage would be fixed in few weeks, THISDAY gathered that repairs have not been completed.

Baru had assured at the weekend that NNPC had one billion litres of petroleum products and urged Nigerians to ignore any threat of fuel scarcity during the Yuletide.

“As you could see around the country we have a lot of trucks that are siding at almost every filling station. We already have sufficient products that will last till the end of the year, leading to next year.  We have an average consumption of 35 million litres per day and at the moment, I have one billion litres of petroleum product in my tanks for the year,” Baru said.

“We will not have any problem; it will not recede.  So be assured that God willing, this Christmas and also New Year will be done without any cues – there are sufficient products all over the Nigeria.”

He said the threat by IPMAN to embark on strike over instability in price of the product was the saddest thing that could happen, stressing that the N145 per litre of petroleum products remained unchanged.

“As for IPMAN, I want to advise them that this is not the time to go on strike; they know what it means to go on strike.  To deprive people of products is the saddest thing that will happen because we have sufficient product and are selling at the official price tag. I think anybody who is trying to increase the price should report appropriately to PPPRA and DPR,” he added.