Major and independent fuel marketers last week attributed the current scarcity of Premium Motor Spirit (PMS) also known as petrol, in some parts of the country to a drop in the supply of the product following banks' refusal to provide credit facilities to importers.
This is on the heels of assurances by the Pipelines and Products Marketing Company (PPMC) that there is enough fuel in strategic reserve in the country to last for more than a month.
Major and independent fuel marketers last week attributed the current scarcity of Premium Motor Spirit (PMS) also known as petrol, in some parts of the country to a drop in the supply of the product following banks' refusal to provide credit facilities to importers.
This is on the heels of assurances by the Pipelines and Products Marketing Company (PPMC) that there is enough fuel in strategic reserve in the country to last for more than a month.
The marketers, represented by the Major Oil Marketers Association of Nigeria (MOMAN) and Independent Petroleum Marketers Association of Nigeria (IPMAN), told the Senate Committee on Petroleum (Downstream) that the current investigation of the fuel subsidy fund management by the two arms of the National Assembly had created panic among the stakeholders, adding that the lawmakers might recommend the withdrawal of subsidy at the end of the probe.
They said because of this anxiety, banks in the country had refused to grant further loans to the marketers to import fuel.
They also told the Senator Magnus Abe-led committee that they had withdrawn from petrol importation for fear that subsidy had been removed and that outstanding debts owed them by the Federal Government might not be refunded.
The Executive Secretary of MOMAN, Mr. Obafemi Olawore, said: "The fear of possible refusal to fund subsidy by government has resulted in the banks' refusal to finance fuel importation," adding that as a result, the Nigerian National Petroleum Corporation (NNPC) had been left to solely import petrol, which is grossly inadequate for local consumption.
Olawore, however, informed the committee that the situation had improved following recent pronouncements by the Federal Government that petroleum subsidy had been restored in the 2012 Budget.
As a result of this "green light", he disclosed that members of MOMAN had placed orders for 180 kilo-tonnes of petrol, which he said, should arrive Nigeria before the end of March.
The MOMAN boss said the NNPC had already released 75 kilo-tones of petrol for distribution, stressing that this should mitigate the crisis by this week.
He also appealed for the intervention of the Federal Ministry of Finance to enlist the confidence of banks in the programme; increase the profit margin which had been stagnated at N4.60 per liter since the past five years; and remove undue delay usually caused by administrative bottlenecks and others.
Olawore, who also blamed the Nigerian Navy for the delay in clearing petrol cargoes at the sea ports, also appealed to the appropriate authority in Nigerian Navy to speed up the process of clearing petrol vessels in the port in order to prevent shortage of the product in the country.
Corroborating the submission of MOMAN, President of IPMAN, Alhaji Aminu Abdulkadir, said although hoarding could not be ruled out of the crises, "the scarcity is caused by the shortage in product supply".
"We are bringing about 120,000 metric tonnes of petrol, but we need the confidence of the banks; if there is drop in one day, it translates to seven to nine days of scarcity," Abdulkadir said.
He also told the Senate panel that IPMAN lacked the financial muscle to import petrol, so it depends on the NNPC and MOMAN hence "a drop in supplies is fatal to the products distribution in the country".
"IPMAN has a revolving stock; we cannot hold back because of our massive retail outlets and we have no money to keep stock," he stated and canvassed an increased profit margin which according to him was overdue.
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