Nigerians may have to prepare for a worse premium motor spirit (PMS) scarcity as the Nigerian National Petroleum Company Limited (NNPCL) depots run out of supply amidst denial of the return of fuel subsidy and accumulated $6.8 billion debts owed to trading partners.
Nigerians may have to prepare for a worse premium motor spirit scarcity as the Nigerian National Petroleum Company Limited depots run out of supply amidst denial of the return of fuel subsidy and accumulated $6.8 billion debts owed to trading partners.
NNPCL is blaming the situation on distribution challenges and panic buying – the same explanation the state oil firm offered previously. But marketers who spoke suggested that the prevailing situation may be far from that. “These private depot owners immediately go there to purchase products from them. They hike the price so we don’t have any alternative than to buy products from them since we cannot get the required quantity of product that we are supposed to use for our retail outlets.”
There have been allegations that most traders who supply NNPCL PMS are refusing to honour the request from NNPCL, which is running bankrupt with a debt of over $6.8 billion. He noted that the retailers have not been able to service bank loans and can’t pay salaries, stressing that they are only expecting Dangote Refinery to change the situation.
Many are questioning the efficiency of the distribution network and the NNPCL’s ability to manage the country’s fuel supply. “Every time there’s scarcity, transport fares go up, and it becomes difficult for us to move our goods, the government keeps telling us not to panic, but how can we not panic when we don’t know when this will end,” she said.
“The company further urges motorists to shun panic buying as it is working round the clock with relevant stakeholders to restore normalcy,” he said. The warning by the Executive Director of Distribution Systems, Storage and Retailing Infrastructure, NMDPRA, Ogbugo Ukoha, comes amidst concern over the increasing incidents of PMS hoarding, which has significantly contributed to the ongoing fuel scarcity across the country.
Centre for the Promotion of Private Enterprise has called on the Federal Government to urgently address the prohibitive and unpredictable exchange rate used for cargo clearance, which, it argued, exacerbates the cost-of-living crisis and undermines economic stability.
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