In response to the ongoing fuel scarcity gripping various parts of Nigeria, oil marketers have pointed to logistics challenges as the root cause of the shortage. This was confirmed just a day after the Nigerian National Petroleum Company Limited (NNPCL) cited similar issues as contributing factors.
During an interview on Channels Television’s Morning Brief, Billy Gillis-Harry, the President of the Petroleum Products Retail Outlets Owners Association (PETROAN), acknowledged that oil marketers are currently constrained in their ability to supply fuel. According to him, the supply chain problems must be resolved before the scarcity can end.
He said: “I think until we get our supply challenges sorted out efficiently and abundantly, we will not be able to get out of this circle.
“I believe you must have heard the NNPC’s communications director who explained that the issues at stake are still logistics-related.
“So until they get that resolved, we may just be managing the little they bring, and give to us to distribute among our members.
“NNPCL is doing its best to bring in products bit by bit, and we can only supply what we have.”
On what the logistics challenges were, he said: “The logistics issue is about ship-to-ship transfer. Until the ship gets products, it cannot deliver to any of the depots. And until depots have products, we the retailers cannot also have access to products,”
The fuel scarcity, which was initially concentrated in northern Nigeria, has now spread to Lagos, exacerbating transportation costs. Some filling stations have raised their prices, selling fuel between N800 and N1,000 per litre, while others are completely out of stock.
As a result of the shortage, black market vendors are reportedly taking advantage of the situation, selling fuel at inflated prices. Despite the challenges, Gillis-Harry assured that oil marketers are working closely with NNPCL to resolve the issues and improve supply. He emphasized that NNPCL is doing its best to bring in products gradually.
