Fuel crisis: killing to kill

Once again, Nigeria is in the throes of a fuel crisis. For eight weeks, Nigerian motorists have been going through hell to get Premium Motor Spirit (gasoline) for their vehicles. Besides having to spend endless hours queuing for fuel, they also pay through the nose to get the product. Only a handful of petrol stations such as NNPCL retail outlets and some large distributors sell at N180 per litre, others sell at N250-300 per litre. Although NNPCL keeps telling anyone who will listen that it has more than enough fuel stock, many Nigerians are back in the era of black market operators to keep their vehicles moving. .

The current fuel shortage has all the trappings of a badly scripted drama. When it first surfaced in parts of the country in October, the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) blamed it on flooding in Lokoja, which it says hampered the movement of tankers across the country. But after the flood receded and the queues did not clear up, the NNPCL said the queues were a result of ongoing road construction around Apapa in Lagos. p>

When speaking to reporters at a press conference in Abuja recently, NNPCL Executive Vice President, Aval, Adeyemi Adetunji said, “The recent queues in Lagos are in high part due to ongoing road infrastructure projects around Apapa and difficult access to roads in parts of Lagos Depots Abuja is impacted by the challenges experienced in Lagos NNPC Retail and leading marketers have stepped up loading dedicated to Abuja to restore normalcy as soon as possible.

“We want to reassure all Nigerians that NNPC has enough product, and we have significantly increased product loading, including round-the-clock operations at selected depots and extended hours at stations. strategies to ensure product sufficiency across the country.

"We are also working with the NMDPRA, MOMAN, DAPPMAN, IPMAN, NARTO, PTD and other industry stakeholders to ensure the return to normal."

But while contradicting NNPC's claim in a TV interview, Independent Petroleum Marketers of Nigeria (IPMAN) chairman Chinedu Okoronkwo said the fuel crisis was caused by depot vandalism by NNPC.

Okoronkwo said, “It is very important to know where we (IPMAN) belong in the chain. This product, PMS, is the product for which the government always pays the subsidy, i.e. the government brings it to NNPC.

"Remember that almost all NNPC depots are not working, more than 80% of them, due to vandalism. There are at least 21 NNPC depots that I can count. When they bring this product, they are now starting to put it in private repositories and paying them triple fees.

"When this product is pumped into these depots, the owners of the depots pretend to own it. Our members cannot easily access this product. They are now forced to buy from the owners of the tank farms, this i.e. the third.

"When this product is obtained from the mother ship, these tank farm owners will go and get it. Now they will put in their cost. You don't expect them to not break even. These are the people who will now sell to us.

"Those who get direct from NNPC, it's N148.19 per litre. Those private tank farm owners, as they start to charge their own charges, which involves vessel hire, NIMASA, NPA , and a lot of related stuff, from their repos, you can get it for N185 or N210.

"Their excuse will be that they lease ships to take product from the mothership and some of these things are dollarized so you have no choice."

But some issues arise from the contradictions between the positions of the NNPCL and IPMAN. Firstly, if other vehicles are moving daily from Lagos to Abuja despite ongoing construction, what is stopping tankers from doing the same? Second, are vadalized NNPC repositories a recent development? If this isn't a recent development, why has it suddenly become a problem as the government's directive on the approved retail price of PMS has been blatantly ignored? Third, if private companies can maintain their own repositories, why can't NNPCL, which is now a private company, maintain its own? If private tank farm owners can protect their investment, why can't the almighty NNPCL protect its own facilities? Why should the biggest oil company rely on other operators to the point of scamming Nigerians?

It is quite obvious that either the government or the NNPC or both are working towards an end, which is to impose a fait accompli on Nigerians. They want to leave Nigerians with no choice but to accept that the fuel subsidy is unsustainable. While this may not be a real problem because the government has already warned Nigerians that the subsidy will be phased out by June next year, why must they subject Nigerians to endless agony and no need to queue for fuel and pay well above the approved retail price? ...