Report: Fuel scarcity might drag till 2013

by Isi Esene

The fuel scarcity currently being experienced in many parts of the country might persist longer than expected as relevant government agencies responsible for making the product available seem not to be able to put the scarcity under control.

Reports say the Nigerian National Petroleum Corporation (NNPC), the agency saddled with the responsibility of importing the bulk of fuel consumed in the country is groaning under the weight of the responsibility making it difficult to meet the daily demand.

Sources say the NNPC is likely not importing enough for domestic consumption which is currently put at 40m litres per day.

Observers say the NNPC’s system 2B pipeline, vandalised last August, is still out of service. This important pipeline pumps petroleum products from the offshore Atlas Cove Depot in Lagos to the NNPC Satellite Depot, Ejigbo; Mosimi Depot, Ogun State; and also to Ibadan, Ilorin and Ore depots.

A petroleum product marketer spoke to the press saying, “It is impossible for the NNPC to all alone handle distribution nationwide.

“When marketers were fully involved, they were discharging and distributing through their depots, but with the current arrangement, the marketers are mainly out of it and the NNPC is just discharging and distributing petrol through about six depots in Lagos as against over 20 depots being fully used for distribution when the marketers were fully involved,” the marketer said.

He continued saying, “If the NNPC tells you that it has 30-day supply of petrol, ask it whether the product is already discharged in tanks or it is in vessels on the high sea. The most likely thing is that the vessels are queuing up to discharge because of the few distribution channels.”

Reports say at most of the private depots used by the NNPC for fuel supply, it takes about a week for a marketer to purchase a tanker-load of fuel.

According to an oil marketing employee, “It is only when you are ready to offer a bribe that you can get supply in two to three days. There is a backlog of tankers owned by marketers waiting to lift petrol, which had been paid for.

“So, the problem is mainly about the System 2B Pipeline not working and everybody having to come to Lagos from all over the country to buy the product. There is no way the queues could be cleared from the petrol stations through the current system.”

Many observers are, however of the view that some vested interests are benefiting from the current distribution challenge which encourages them to prolong the scarcity for selfish reasons.

NNPC’s Acting Group General Manager, Public Affairs, Fidel Pepple, told reporters early in the week that the corporation was still awaiting security clearance before it could move its men and materials to site to repair the damaged part of the System 2B Pipeline at Arepo, Ogun State.

Tags: Depot, Fidel Pepple, nnpc, Oil and Gas, pipeline, vandalization

Report: Fuel scarcity might drag till 2013

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Report: Fuel scarcity might drag till 2013

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