Bridging cost, logistics issue cause of fuel scarcity ― Marketers

After barely a month of relief from fuel scarcity and long queues at filling stations across the country, long lines of petrol queues have again resurfaced in most parts of the Federal Capital Territory (FCT) and other neighboring States.

The menace, the Nigerian National Petroleum Company Limited (NNPC) had on Monday, blamed the long public holidays and increased fuel purchases which is, “also usual with returning residents of the FCT from the public holidays.”

However, speaking with Tribune Online, the Spokesperson, Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr. Chinedu Ukadike said although, the long holidays were a contributing factor, the issue was more of logistics, in terms of haulage, transportation and handling.

According to him, most of its marketers were owed over N3billion in bridging fees by the Petroleum Equalization Fund (PEF).

He said this has put a strain on the financial capability of members who find it difficult to access funds from commercial banks.

His words: “The issue of scarcity being experienced is not that there is a scarcity of products. It is a logistics issue in terms of haulage, transportation and handling.

” Most of our marketers who are bridged from Port Harcourt, Warri, and Calabar, PEF, owe them a lot of money. I cannot put the value correctly but with what we have gathered so far, they are icing marketers over N3bn and marketers are out of cash, and financial forms for doing business.

“That is why you see them not averse in terms of dispatching their trucks to load from these private depots situated in the riverine areas.”

Consequently, he called for the establishment of an energy bank for marketers to access loans to boost their operations.

“We agreed in our meetings that we would approach the NASS for the enactment of energy bank which will only serve stakeholders in the oil and gas industry, especially the entire distribution in the Petroleum Industry.

“A truck of AGO now is N21million where do we get that kind of money? And the profit margin is still the same, it has not increased. A truck of PMS now is around N10million, where do we get such money. If you borrow from the bank, they will overcharge you.”

Meanwhile, the fuel queues seem to have increased as of Monday independent findings within the Airport road, Abuja revealed.

For instance, most filling stations like NIPCO, and Saddi Kemil were not selling while the few ones with products such as Shema, and Dan oil had massive queues.

Some tankers were however sighted in some stations but it was not sure if they were offloading products as of the time of filing this report.

Similarly, black marketers have taken over the highway to make a profit from the situation as a jerry can of 10litres was sold between N3,000 to N3500.

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