Adulterated PMS: Scarcity worsens as NNPC replaces stock in eight days
…Loses N14.5bn on 50,000MT off spec cargo as FG threatens to sanction NNPC importer
…Isolates adulterated fuel
By OUR CORRESPONDENTS
Fuel scarcity that slowly began in Lagos couple of days ago is gradually creeping into other parts of the country as another cargo of Premium Motor Spirit (PMS) by the Nigerian National Petroleum Limited (NNPC) is expected to arrive the country in eight days from today as the sole importer. This is following withdrawal of major and independent marketers from PMS importation due to high landing cost of N290 per litre above the regulated pump price of N165 per litre. Nigerian NewsDirect also gathered that the adulterated cargo of 50,000 metric tonne (MT) brought by unknown supplier will result in the loss of N14.5billion by the NNPC at N290 per litre landing cost.
This calculation is based on 1000 litres or 1kg being an equivalent of IMT.
Industry analysts confirmed that Nigerians will have to cope with scarcity and long queues for another 15 days since it will take two days to test the quality of the NNPC stock expected to to arrive in 8 days and five days to distribute to marketers for adequate stock level at retail outlets nationwide.
Meanwhile, the Federal Government has promised to sanction errant supplier and launched plans to recover off spec PMS from filling stations.
However, our correspondents that moved round confirmed that in Lagos state and parts of Ogun State, motorists spent hours on long queues to get fuel.
It would be recalled that Major and Independent Marketers had left importation solely to the NNPC following inability of the Federal Government to remove subsidy to avert strike announced by the Nigeria Labour Congress (NLC) and Trade Union Congress ( TUC).
As commuters groan and commercial bus drivers raise transport fares, long queues also increased in Abuja, Oyo and other states of the federation.
The Federal Government yesterday also confirmed that efforts are being made to isolate methanol quantities measured to be above the nation’s specifications were discovered in the PMS otherwise known as Petrol’s supply chain.
The Authority, in a press release by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) yesterday, confirmed that a limited quantity of PMS had been discovered to be adulterated with Methanol.
The statement said, “Methanol is a regular additive in petrol and usually blended in acceptable quantity.”
The Authority further assured working with Nigerian National Petroleum Authority (NNPC) Limited including other critical industry stakeholders of adequate monitoring of the situation, noting that “appropriate actions” would be melted at those responsible for the adulteration.
However, some marketers who spoke on the condition of anonymity said the scarcity may persist until all the affected areas are duly restocked.
They drew attention to the current directive to withdraw the product from the market even after distribution to many filling stations across Lagos and other areas created a supply shortfall, thereby, leading to panic buying.
According to them, “As we speak, the Nigerian National Petroleum Company Ltd is working to ensure that this disruption to the supply chain is addressed as soon as possible.
“However, there is the challenge of logistics and how to compensate those who were supplied with the adulterated products.
“The NNPC is working with marketers on this and once the depots are restocked, tankers will start loading and supply will improve across the country.
“Until we are able to achieve this, queues will remain at the petrol stations because of the panic already created,” one of them said.
One of the major independent petroleum marketers who chose to remain anonymous said there had been complaints from some motorists on the fuel quality which made his station stop selling for now.
He said, “Some independent marketers are not hoarding products as is being alleged. Some of us were affected by the supply we got and we are trying to resolve the situation so that we can continue our business.”
Meanwhile calls for heavy sanction against those responsible for the current national embarrassing have continued to gather more reverberations through out the country.
One notable advocate for saction against those identified as culprits is the All Progressives Congress (APC), South African Chapter.
They expressed concern over the return of fuel queues at filling stations in Lagos and some parts of the country.
Mr Bola Babarinde, the Chairman of the chapter, in a statement on Tuesday in Lagos, urged the Federal Government to punish those involved in the scarcity of the Premium Motor Spirit (PMS) popularly known as petrol.
He said, “The common sights at petrol stations in Nigeria during regime of PDP resurfaced yesterday (Monday) in Lagos and some parts of Nigeria.
“Initially, it was rumoured that stations are hoarding fuel in anticipation of increase in prices of petroleum products by Federal Government, I never believed though.
“I don’t believe in panic buying especially when we know if prices are increased we will continue to buy at that rate how much can we save rushing to buy now.”
According to him, the situation is clearer that the Nigerian National Petroleum Company Ltd allows substandard PMS into Nigeria again after many years President Muhammadu Buhari’s government has stopped fuel scarcity.
He noted that the Federal Government had sustained uninterrupted supply of petroleum products to Nigerians for many years.
Babarinde said that the enemies of the government were constantly looking for where they would criticise the regime even when they knew their criticism would hold no water.
“This recent event of importation of poor quality fuel is a grave concern to well meaning Nigerians and we members of APC in Diaspora are concerned that bad products were successfully imported and even allowed to be distributed to consumers.
“The officials involved should be investigated and all culprits should be tried and sanctioned.
“This type of behaviour is negative to great work the administration is doing to restore confidence in APC government despite enormous challenges facing our country,” he added.
The Chairman said the development was avoidable and no excuse for it at this time in Nigeria.
“The Federal Government should quickly make statement and apologise to Nigerians whose cars and equipment were damaged due to the carelessness of the people we entrusted with the management of our petroleum ministry.
“Compensation must be given to all Nigerians affected by this dastardly behaviour of NNPC staff.
“We will continue to monitor this situation as interested party to good governance in Nigeria and for the love of our country and our party,” he said.
Corroborating the APC Chairman’s position while speaking with Nigerian NewsDirect, an Oil & Gas expert, the Managing Partner, BBH Consulting, Barr. Ameh Madaki said Federal Government must impose weighty sanction on erring importers to serve as deterrent to others in the industry.
According to him, “The persistent disruption to the supply chain of petroleum products anytime there are rumours of removal of subsidy is quite appalling as a clear case of failure of regulation or Regulatory Capture.
“The regulators of the Oil and Gas industry in Nigeria would really need to sit up and play their roles beyond issuance of lame press statements that mean absolutely nothing and which are usually largely ignored by operators in the industry.
“For the current state of our Oil and Gas industry, especially post PIA, the new regulators would need to assert their authority and command the respect and mandatory compliance of operators, including NNPC Limited, otherwise it will continue to be business as usual.
“Hefty fines for infractions such as supplying adulterated PMS into the supply chain, as evidenced in the recent press release by the Midstream and Downstream Regulatory Authority should follow such infractions to act as a deterrence, rather than empty and open ended statements which have no definitive pronouncements on sanctions for infractions.
“Nigerians are genuinely tired of fuel queues and would demand that they end forthwith. President Buhari has added zero value to the oil and gas industry as Minister of Petroleum, and should relinquish this role without any further delay to make way for a more knowledgeable and result oriented substantive Minister of Petroleum Resources, who can command the respect of the industry from a position of knowledge, not politics.”
For continuous PMS supply, NMDPRA said it was working hand-in-glove with NNPC Ltd and all Oil Marketing Companies to sustain sufficient distribution of the products in all retail outlets nationwide.
“Meanwhile, NNPC has intensified efforts at increasing the supply of petrol into the market in order to bridge any unforeseen gap,” the statement by the NMDPRA read.
Efforts made to get reaction from the NNPC proved abortive about when the next cargo is due to arrive so as to replace the adulterated cargo.
There was no reply to text messages sent to the NNPC GGM Public Affairs Garba Deen Muhammad.
