Petroleum tank farms belonging to private marketers have accused the Nigerian National Petroleum Corporation (NNPC) of masterminding the fuel scarcity in the country because the agency allegedly fails to ensure equal distribution of petroleum products across the country through the tank farms.
Sources in the downstream sector confirmed to Shipping Position Daily last week that the NNPC distribution network was connected only to the major oil marketers like Total, Mobil, Oando, Forte Oil, Conoil among others, while the private depots were jettisoned.
Stakeholders have however warned the Federal Government that private depots cannot be wished away by NNPC, because they are created to cushion the effect of scarcity and to ensure adequate distribution of fuel to Nigerians.
Findings revealed that private tank farm owners decided to hoard the little product in their tanks and selling only to those willing to pay N95 for a litre instead of the regulated price of N77.66 kobo.
A reliable source confirmed to our correspondent last week that, “NNPC is producing fuel at the moment but they are pumping directly to only NNPC depots, so most of the private depot owners cannot get allocation because the fuel is pumped directly to NNPC depots, it is the major marketers that are getting the product for now”
“NNPC is connected directly to most of the major marketers through Mosimi and Ejigbo, government is not bothered about our own business”
The source also said that the fuel scarcity would only ease-off when the Federal Government pays outstanding subsidies of N423 billion it owed the importers of petroleum products.
Even though the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu assured last week that oil marketers may be paid the N423 billion owed this week, stakeholders were sceptical about the intention of the Buhari government to pay the marketers.
“The problem is that the importers have not gotten their fuel subsidy money and that is why the scarcity will not end, Okonjo Iweala said that it has paid those that are genuine marketers and the rest are not genuine, and this present government of Buhari is not ready to pay anything like that, we are not sure the man will pay”, a marketer said last week.
Further investigations by our correspondent however showed that some of the depots actually have products in their tank farms. The depots were reportedly refusing to sell the products because they had imported at a high price which is not favourable to the N87 per litre pump price directed by the government.
A petroleum marketer, Mr. Olanife Adeoye confirmed to Shipping Position Daily that some of the depots belonging to private owners have products but the price is beyond what the government is demanding.
“The tank farms have products that have been imported but the price is not encouraging, like in our depot now we have products; we have kerosene but it is beyond what customers can buy, when they go to other depots they get better prices than our depot, we have up to 8million litres redundant in our tanks because of the high price of importation”.
Meanwhile, the Minister of State for Petroleum, Ibe Kachukwu has instructed the DPR that any station that has products and is hoarding it, such product should be sold free to customers.
“I have instructed that they should sell all the products in there for free to customers who are out there and impose serious penalties on the stations. Sealing them is not the answer but penalizing theme and I hope the message goes out loud and clear. I urge Nigerians to be a bit patient and stop panic buying."
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