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Stats: 1,295 members, 11,631 Topics. Date: October 22, 2018, 4:08 pm

Fuel Crisis: Our Tanks, Depots Are Empty, Oil Marketers Fault NNPC

BiafraSay Forum | BiafraSay General | #Politics* | Fuel Crisis: Our Tanks, Depots Are Empty, Oil Marketers Fault NNPC (78 Views)

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…Say DSDP, high cost, interest rate responsible for scarcity
…Say marketers not to blame, debunks hoarding claims
By Michael Eboh
Oil marketers, under the aegis of Depot and Petroleum Products Marketers Association, DAPPMA, Wednesday, exonerated themselves from the current fuel crisis across the country, stating that presently, there is no fuel in the depots and tanks of its members nationwide.

This has dampened hope for a speedy resolution of the fuel crisis which is threatening the economic fabric of the country.
Again, this is contrary to claims by the Nigerian National Petroleum Corporation, NNPC, and its downstream subsidiary, the Petroleum Products Marketing Company, PPMC, that fuel vessels are discharging the commodity in ports across the country on a daily basis.
DAPPMA, in a statement signed by its Executive Secretary, Mr. Olufemi Adewole, stated that “While we cannot confirm or dispute NNPC’S claims of having sufficient product stock, we can confirm that the products are not in our tanks and as such cannot be distributed. If the products are offshore, then surely, it cannot be considered to be available to Nigerians.”
Adewole insisted that its members’ depots are presently empty, noting however, that if the Petroleum Products Marketing Company, PPMC, can provide it with Premium Motor Spirit, also known as petrol, its members are ready to undertake 24 hours loading and truck-out.
The DAPPMA chief executive disclosed that its members had made and paid for large orders of fuel from the NNPC, which are yet to be supplied to the marketers.
“NNPC imports and distributes through DAPPMA, Major Oil Marketers Association of Nigeria, MOMAN, and Independent Petroleum Marketers Association of Nigeria, IPMAN. Our members pay PPMC/NNPC in advance for petroleum products, and fully paid up PMS orders that have neither been programmed nor loaded is in excess of 500,000 metric tonnes, about 800 million litres, as at today, and enough to meet the nation’s needs for 19 days at a daily estimated consumption of 35 million litres,” he averred.
Adewole blamed the unending fuel crisis on the challenges in the Direct Sales Direct Purchase, DSDP, scheme, rising price of the commodity in the international market and the high interest rates charged by banks in the country.
He said, “We all know that we presently run a fixed price regime of N145 per litre for PMS without any recourse to subsidy claims, however, we also have no control on the international price of crude oil.
“We understand that the NNPC meets this demand largely through its DSDP framework; however, due to price challenges on the DSDP platform, some participants in the scheme failed to meet their supply quota of refined petroleum products, especially PMS, to NNPC. This is the main reason for this scarcity.”
Adewole added that since Hurricane Katrina, the international price of PMS had not dropped below $600 per metric tonne, while the exchange rate used and the interest rate charged by banks are N306 to a dollar and 25 per cent respectively.
He noted that anytime the NNPC assumes the role of sole importer, there are issues of distribution, because it is marketers who own 80 per cent of the functional receptive facilities and retail outlets in Nigeria.
Adewole disclosed that oil marketers remain commitment to the progress of the nations and its citizenry, stating that therein lies its profitability and fulfilment.
He said, “We, petroleum products marketers do empathise with all Nigerians who are going through difficulties at this time, spending hours on fuel queues because of the current fuel scarcity due to no fault of yours.
“Sadly, some people have blamed marketers for hoarders fuel. Unfortunately, this is so far from the truth. Hoarding fuel is regarded as economic sabotage and we assure all Nigerians that our members are not involved in such illicit acts.”

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