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Fuel Scarcity: Blame It On Logistics – NNPC

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Five days into the acute petrol scarcity in the Federal Capital Territory (FCT), the Nigerian National Petroleum Corporation (NNPC) Limited has attributed the ongoing supply shortage to logistics challenges and adverse weather conditions, including flooding in coastal regions of the country.

Since last Wednesday, queues have resurfaced at filling stations in Abuja and its environs for the third time this year. As the new week began, more stations ran out of stock, exacerbating the situation.

A survey around the city revealed that almost all stations were shut, except for NNPC mega filling stations, NIPCO, and a few major marketers. These open stations experienced long queues and chaos, with motorists attempting to enter through exit gates.

Black marketers took advantage of the situation, increasing the price of a ten-liter keg from N10,000 to N13,000 in central Abuja.

Adverse Weather and Logistics Issues

In a statement by the Chief Corporate Communications Officer, Mr. Olufemi Soneye, NNPC Limited explained that adverse weather conditions have disrupted ship-to-ship transfers of Premium Motor Spirit (PMS) between mother vessels and daughter vessels.

This, coupled with thunderstorm activities, has affected berthing at jetties, truck load-outs, and the transportation of products to filling stations, causing a significant disruption in supply logistics.

“The fuel queues seen in the FCT and some parts of the country are due to the disruption of ship-to-ship transfer of PMS between mother vessels and daughter vessels resulting from recent thunderstorms,” the statement read.

“The adverse weather condition has also affected berthing at jetties, truck load-outs, and transportation of products to filling stations, causing a disruption in station supply logistics.”

NNPC emphasized the flammability of petroleum products and the necessity of adhering to Nigerian Meteorological Agency (NIMET) regulations, which prohibit loading petrol during rainstorms and lightning to avoid severe danger to trucks, filling stations, and human lives.

Furthermore, Mr. Soneye noted that flooding of truck routes has constrained the movement of PMS from coastal areas to the FCT.

Efforts to Resolve the Crisis

NNPC assured the public that it is working with relevant stakeholders to resolve the logistics challenges and restore the seamless supply of petrol to affected areas.

“Loading has commenced in areas where these challenges have subsided, and we are hoping the situation will continue to improve in the coming days, restoring full normalcy,” Soneye said. He urged motorists to avoid panic buying and hoarding of petroleum products.

Independent Marketers’ Perspective

The Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Chinedu Ukadike, explained that marketers had not received petrol supplies for some time, potentially due to the impending delivery of premium motor spirit from the Dangote Refinery.

“Supply has become epileptic again, and we have not received adequate supply in recent times. We still depend on the importation of products, so any shortage in supply, logistic problem, or procrastination impacts us almost immediately,” Ukadike said.

He noted that suppliers are cautious about bringing in products to avoid incurring losses, similar to the situation when Dangote entered the market and reduced the price of Automated Gas Oil (diesel).

“Since Dangote announced its petrol supply intention, those supplying NNPC are skeptical about bringing in products to avoid incurring losses,” he added.

Ukadike also highlighted that most independent marketers rely on supplies from NNPC Retail, which has not been forthcoming recently.

“They allocate products to tank farm owners, but we, independent marketers, have not been supplied,” he concluded.