IPMAN explains long fuel queues in Abuja, Lagos, Port Harcourt

By Derrick Bangura

Long lines have returned to petrol stations in Abuja, sections of Lagos, and other states following the provision of a faulty specification of petrol in various parts of the country and its subsequent removal in accordance with a government directive.

On Monday, it was reported that the present problem with gasoline supply in several states was caused by the instruction to remove contaminated products from circulation.

The situation has exacerbated due to a supply constraint from the main importer, the Nigerian National Petroleum Company Limited (NNPC), according to the reports.

The bulk of filling stations in Abuja and adjacent states were closed, and vehicles struggled for hours in the sun to buy from the few that were open, causing massive traffic congestion in portions of the Federal Capital Territory (FCT).

The Independent Petroleum Marketers Association of Nigeria (IPMAN) attributed the supply constraint to concerns such as substandard fuel in the market and undersupply from the national oil company.

The product’s cargo was stated to be high in Sulphur, and marketers were instructed not to sell to customers, despite the fact that at least 100 million litres had already been distributed.

Furthermore, it was discovered that the lineups had reappeared in part because the chasm that existed when depot owners began stockpiling supplies prior to the federal government’s declaration of subsidy retention had not been filled. According to THISDAY, this has affected the transportation of goods from Lagos to Abuja and other regions of the north.

The federal administration reversed its decision to phase out fuel subsidies in mid-2022, citing the need to safeguard the poor and vulnerable.

Many of the fuel stations visited, including Eterna and Enyo on Olusegun Obasanjo Way in Wuse as well as Total on Herbert Macaulay, did not have product and more than half of the fuel pumps at the NNPC mega station in the area were not operational.

South-West Zonal Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr. Dele Tajudeen, who confirmed the existence of contaminated fuel in circulation while speaking on a national television yesterday, absolved the organization of any blame. Tajudeen explained that that IPMAN members had suffered severe losses and may ask for damages from the authorities.

According to him, members of his group were supplied with bad products, which had put them in serious trouble, as they had to repair vehicles for their customers whose cars were impacted by the bad product.

Stressing that fuel station owners are now rejecting the bad product, he explained that the group was working to resolve the issue amicably with NNPC’s subsidiary, the Petroleum Products Marketing Company (PPMC).

“We need to be compensated, but we don’t want to put the masses in another crisis if we resort to going on strike, demanding compensation because we know people are already in a deep economic problem,” he said.

The IPMAN official assured that the issue of bad fuel in circulation was already being investigated, stating that Managing Director of PPMC, Mr Isiaku Abdullahi, was intervening in the matter.

“Until the investigation is concluded, I don’t want to comment more, so as not to pre-empt it, but Mr Abdullahi is making efforts to ensure that all the depots are revived. He is doing a holistic rehabilitation of the depots,” he said.

Tajudeen added, “This (fuel scarcity) is as a result of short supply from the NNPC and, of course, the private depots around Lagos. One of the major reasons for the scarcity is that the five NNPC depots in southwest as at today are not loading products.

“Also, we witnessed the issue of bad product and I must use this opportunity to tell the masses that it is not from our members. As a matter of fact, we suffered serious loss of cash and integrity because we received the product from the private depots.

“As I am telling you, we have run into millions of naira in losses as a result of this bad product. So, the station owners are not responsible for these products.”

Tajudeen commended Abdullahi for his efforts at ameliorating the situation, describing him as proactive. He said most of their customers had been complaining, prompting them to carry out repairs, replacement of the bad fuels and bearing the reputational damage caused by the situation.

He pointed out, “The situation is not too good because of non-availability of this product, coupled with this bad product that came in the last two weeks. The products are being rejected now. So, because of that, there’s shortage of product.”

On the rising cost of diesel, Tajudeen stated that while the product had gone to N401 without the logistics costs, petrol has gone to N156 without transport costs, saying it will then hit N162 to N163 before it gets do the stations. “Our profit margin has been eroded completely,” he lamented.

But he argued that government could not leave pricing in private hands because it will “strangulate the masses”, adding that the international crude oil prices does not necessarily tally with the rise in prices in the country.

A top NNPC official who spoke with THISDAY on the matter, stated that whatever the situation, it was the responsibility of the new downstream/midstream authority to speak on the matter.

The source said, “They (the queues) will disappear. It’s just a small supply gap. People are bound to make all sorts of speculations, but if the speculation continues, the downstream/midstream authority will come up with a statement to clarify whatever is happening.”

Meanwhile, a civil advocacy group yesterday called on the federal government to take a decisive action against those alleged to be hoarding petrol in the country, and subjection unbearable hardship on the masses.

The group, in a letter to the Minister of State for Petroleum and Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), specifically accused members of independent marketers of petroleum products of hoarding fuel, which according to them, was responsible for the long queues at fuel stations across the country, particularly the Federal Capital Territory (FCT) and its environs.

The letter dated February 7, 2022, and signed by the group’s Convener, Mr. Deji Adeyanju, was titled, “Persistent Hoarding of Fuel by Independent Marketers: A Call for Urgent Action.”

It said, “As you may already know, in recent months independent marketers of petroleum products have engaged in speculative acts of hoarding petroleum products, particularly PMS, in a bid to criminally increase the prices, cause artificial scarcity and plunge the country into widespread economic chaos.

“For example, filing stations across the nation’s capital are littered with long queues of vehicles seeking to purchase fuel, while the independent marketers ensured that their filing stations were shut for the day by 6pm.”

The group, however, lamented that the regulators had not deemed it necessary to call these independent marketers to order, as they had continued to allow them take advantage of Nigerians.

The convener expressed regret that the situation was causing people severe agony, emphasizing that an artificial fuel scarcity should be the last thing on their minds.

“It is also crucial to note that creating artificial scarcity as a result of economic sabotage is a criminal offense under our laws,” he said.

“As a result, the federal government must stop watching the ball and take immediate action to address the economic sabotage, especially because there is no reason for artificial scarcity at this time.”

“In light of the circumstances, we urge the federal government to apprehend the delinquent marketers, close their filling stations, and put an end to the ongoing economic sabotage. Nigerians have a right to acquire petroleum at a reasonable price at any time.”