NNPC Speaks on Reason Behind Current Fuel Scarcity As Marketers Set Date Queues Will Disappear

• The NNPC has provided further explanation on the reasons behind the current fuel scarcity across the country
• The national oil company had earlier in a statement said the scarcity was caused by disruption in the supply chain
• The disruption was caused by seven daughter vessels carrying 150 million litres of petrol trapped at the Escravos channels

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Nigerian National Petroleum Corporation (NNPC) retail segment has revealed that the trapping of seven daughter vessels caused the current fuel scarcity in the country.

Huub Stokman, who disclosed this, said the vessels were carrying a combined total of 150 million litres of petrol.

The vessels were trapped on the high sea at the Escravos channel, a key oil terminal in the Niger Delta, resulting in a break in the supply chain.

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This also led to a shortage of daughter vessels to evacuate more than enough petroleum products from mother vessels to Nigerian jetties and terminals, BusinessDay reports.

NNPC speaks on fuel scarcity

Stokman, who is also the chairman of the Major Energy Marketers Association of Nigeria, added that the challenges continue to linger due to the country's supply chain.

He said:

“The supply chain in Nigeria is very fragile at times. It’s very complicated, and there are only small things like bad weather or low tide that need to go wrong to cause some disruption.

“Five empty vessels expected to deliver fuel to the Warri area cannot get out of Escravos, while two vessels laden with products are waiting to go through the Escravos channel.

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“This has lingered for a couple of days. This means if you have seven vessels carrying 150 million litres of PMS that can’t load again or bring in the next products, we will have disruption in the whole value chain."

Fuel scarcity

This disruption to the petrol supply chain has led to long queues at gas stations across the country.

A civil servant who lives in the Ikotun area of Lagos told Legit.ng that he wakes up very early to buy fuel.

"I hardly sleep these days because I am always worried about how to get fuel to go to work. I have to wake up as early as 4:30 am, prepare, and drive to the filling station to wait.

"If I don't do this, I will either buy from the black market at N1,100 or N1,200 per litre, or take a bus to work."

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Marketers offer hope to Nigerians

Earlier, Legit.ng reported that marketers offered hope to Nigerians that the current fuel scarcity will be over soon.

The marketers believe that it will take at least 2 weeks to see the end of the current scarcity across the country.

They believe when all the challenges are cleared, fuel prices at filling stations will revert to old prices.

Source: Legit.ng