Nigerians may need to brace for continued fuel shortages as oil marketers have identified persistent logistical challenges as the primary cause of the ongoing scarcity of Premium Motor Spirit (PMS) across the country.
During an appearance on Channels Television’s Morning Brief on Monday, the President of the Petroleum Products Retail Outlets Owners Association (PETROAN), Billy Gillis-Harry, explained that supply constraints are limiting the distribution capabilities of oil marketers. He noted that until these logistical issues are resolved, the availability of fuel will remain constrained.
Gillis-Harry elaborated that the current issues are tied to ship-to-ship transfers, where delays in receiving cargo prevent timely delivery to depots. Consequently, retailers are unable to access sufficient supplies to meet demand.
“I think until we get our supply challenges sorted out efficiently and abundantly, we will not be able to get out of this circle,” Gillis-Harry stated. He emphasized that the Nigerian National Petroleum Company Limited (NNPCL) is working to address these issues but is only able to distribute limited quantities of fuel at the moment.
The fuel scarcity, which initially affected the northern regions, has now spread to the Federal Capital Territory, Lagos, and other states. Reports indicate that the price of petrol has surged to between ₦800 and ₦1,000 per litre at some filling stations, with transportation costs rising accordingly. Meanwhile, black market operators are capitalizing on the situation, exacerbating the scarcity.
In response to claims that the shortage is linked to debts owed by NNPCL to international oil traders, the company’s Chief Corporate Communications Officer, Olufemi Soneye, refuted the allegations. While acknowledging that incurring debt is common in the oil trading industry, Soneye assured that NNPCL is managing its obligations through a first-in-first-out (FIFO) payment system.
Gillis-Harry concluded by expressing confidence that ongoing discussions with NNPCL would help alleviate the supply challenges, though he cautioned that the situation might persist until these logistical hurdles are fully addressed.
