By Adewale Sanyaolu

After more than a year of relief from fuel scarcity in the country, filling stations in major parts of the country are now contending with shortage of petroleum products, a situation that is to mar the Christmas and New Year celebrations for many families and businesses.

What started like a child’s play on Monday December 4, has now snowballed into a chaotic situation that has now dragged on for weeks without any solution in sight, thus bringing down commercial  and domestic activities on its knees.

On that day, Lagos and Abuja experienced queues of motorists in search for petrol while some filling stations refused to sell petrol, to motorists since they were not sure when the next supply would come.

But, more worrisome is the recent disclosure by the President of Abuja Chamber of Commerce and Industry that Micro, Small and Medium-scale Enterprises lost about N30 billion to the February 5, 2016 to end of March 2016 fuel scarcity.

The pockets of fuel queues in Lagos emerged few days after the Independent Petroleum Markers Association of Nigeria (IPMAN) Lagos State chapter, accused the Nigerian National Petroleum Corporation of under-supplying its members with petrol while also colluding with depot owners to sell above the recommended ex- depot price.

IPMAN had said that its members in Lagos and parts of Ogun State might be forced to shut their filling stations numbering about 900 by December 11 if the situation persisted.

But beyond the fuel scarcity, Nigerian may as well have a stress free celebration if some tips aimed at conserving fuel and managing the little available are adhered to at this period of scarcity of products.

Failed assurance

On Oct 18, shortly after his investiture as a special marshal of the Federal Road Safety Corps (FRSC), the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Maikanti Baru, assured that Nigerians will not experience scarcity of Premium Motor Spirit (PMS), also known as petrol, during the yuletide season because it had stored over two billion litres to ensure a hitch-free movement of citizens across the country.

It said the end-of-year period was usually characterised by scarcity of fuel due to supply and demand disequilibrium.

Baru said the provision of petroleum products would not only ease transportation but also make the roads safer for motorists, adding that consumers would have no need to hoard fuel in jerry cans.

“As we speak, the NNPC has over two billion litres of petrol and we want to sustain this level from now on up until the end of the year and beyond. This volume will give the country product sufficiency of about 60 days, well above the standard 30 days sufficiency threshold,”.

But, two months after making the promise to ensure that Nigerians have a hitch- free celebration, the situation is the reverse as Nigerians are now scampering for fuel as they battle with shortfall in petroleum products supply.

But beyond the fuel scarcity, Nigerian may as well have a stress free celebration if some tips aimed at conserving fuel and managing the little available are adhered to at this period of scarcity of products.

Economic loss

To traders, especially the ones that sell perishables goods, this is the period ever as they make more sales during the yuletide. Some of them who spoke expressed frustration over the persistent fuel scarcity.

Chairman, Frozen Foods Dealers Association of Nigeria, Magboro Chapter, Ogun State, Mr. Olushola Oni,  had disclosed in a recent interview that about 80 per cent of their members had closed shops after they lost goods worth N5 million to lack of power supply, which was as a result of fuel scarcity.

Though he admitted that residents of Magboro had not had power supply for four years, he argued that the fuel scarcity had compounded their problems.

“In the past two weeks, we couldn’t even sell anything because we couldn’t see fuel to buy to power our generators. The unfortunate thing is that a lot of them got spoilt and we had to dispose them. I have lost about N500, 000 to the crisis. We appeal to the Federal Government to find a common ground with the marketers and solve the crisis,” he said.

Also, the President, Abuja Chamber of Commerce and Industry, Mr. Tony Ejinkeonye, had equally disclosed in a recent interview  that the Micro, Small and Medium-scale Enterprises have lost about N30 billion to the persistent fuel scarcity in the last 30 days.

According to him, the loss, which was as a result of their inability to get petrol to run their companies, has stagnated business across different sectors of the economy.

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“We have made it clear that the development shows that we are incompetent managers of our resources. Labour productivity is low as employees have stayed off work since the hike of fares by transport providers; and when they come they are always late. These have forced some of our members to close shops,” he said.

DPR, NNPC intervenes

The Department of Petroleum Resources (DPR), said it will  wield the big stick by imposing a N20 million fine against those selling petrol above approved ex-Depot Price, closure of such facility for three months while  the PPMC shall also exclude the erring depot from coastal supply allocation for at least a period of one (1) calendar year.

DPR Lagos Zonal Controller, Mr. Wole Akinyosoye, equally said depots selling petrol to bulk buyers without verifiable retail outlets risk a fine of N10 million  and closure of the erring depot for at least six months, after the products in the depot have been sold off.

For those hoarding at retail outlets, a fine of N200.00 per litre would be imposed on the hoarded product and the erring station would be closed for at least six months. In addition, the recovered product would be auctioned off free to the public.

In the case of those selling above the price cap at retail outlets, six-month closure of the erring station while the product being sold above the cap price would be auctioned off to the public.

These actions according to him are clear violations of the Petroleum Act 1969 and extant Regulations and they exacerbate the current supply challenges by bringing unnecessary hardships on the consumers.

On its part, NNPC said it has increased supply to Abuja from 70 trucks daily  to 100 trucks while Lagos will continue to enjoy 300 daily truck out.

Though, the increase for Abuja represents about 142. 8 percent and has failed to impact on members of the motoring public as fuel queues still persist

Breakdown of the 300 trucks to Lagos translates to 9.9 million litres while the 170 trucks for Abuja amount to 5,610,000 litres.

Group General Manager, Group Public Affairs Division of NNPC, Mr. Ndu Ughamadu, explained that the Corporation has 21 days sufficiency of petrol which translates into 750 million litres of white product

Ughamadu, explained that the petrol stock is also boosted by supplies from Port Harcourt Refinery as well as Kaduna Refining and Petrochemical Company which are autonomous business units of the corporation.

It enjoined motorists and other consumers of petroleum products to desist from panic buying, while also warning marketers not to engage in hoarding as defaulters would be prosecuted.

Experts proffer solution

While economists urged the FG to explore the untapped opportunities in the petroleum sector, industrialists called for the review of the current policy framework of the downstream sector in the oil and gas industry.

The Director General, Lagos Chambers of Commerce and Industry, Mr. Muda Yusuf is bothered about what he described as lack of clarity on deregulation and liberalisation in the sector, which has put many investments in the sector at risk. He explained that the downstream sector suffers from overregulation that has profound negative consequences for growth, investment and job creation in the sector.

The LCCI boss called on the government to liberalise the downstream sector for unfettered private participation and investment, adding that the role of the NNPC has to be defined as it cannot play the role of both an operator and a regulator.

“The roles of the DPR and the Petroleum Product Pricing and Regulatory Agency (PPPRA) should be defined and devoid of overlapping of responsibilities while the Central Bank of Nigeria should ensure a more transparent process in the allocation of foreign exchange to petroleum products marketers,” he advised.

Also, a petroleum expert, Mr. Martin Onovo attributes the current fuel shortage to wrong leadership. He asserts that what Nigeria needs is a strong Petroleum Product Management System in order to put a halt to the scarcity.

“We need competent and sincere hands to manage the sector because Nigerians don’t have confidence in the people managing the sector now. They deceived people claiming that the three refineries are working and they are importing,” he said.

According to him, when the leadership is wrong, the country will be faced with several teething problems like fuel scarcity that affects productivity.

“Where an individual spends five hours on queue for fuel, it means he has only two to three hours to work and some may not be able to work due to the scarcity. There can be no production in the absence of work and this invariably will lead to a decline in our Gross Domestic Product, which is crucial to the growth of the economy,”.