Fuel Scarcity: Oil Importers Suspend Activity

Fuel Scarcity: Oil Importers Suspend Activity

 The fuel Scarcity currently ongoing in the nation, especially in Lagos and Abuja is going no where soon, as oil marketers have suspended importation.

The marketers decision to suspend the importation of Premium Motor Spirit (PMS), was due to the Federal Government's failure to pay them their claims.

One source deep in the depot and Petroleum Products Marketers Association, DAPPMA told newsmen that most of the marketers have not been paid by the FG and this is limiting their ability to finance the importation of fuel.

The source demanded that the FG honour their deals and pay the marketers, revealing that the FG paid some DAPMA members about N4 billion but this was just a chunk of the iceberg.

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The source said: “The money that the marketers were paid by the Federal Government was, according to the banks, like a tip of the iceberg, compared to the huge amount the marketers owe the banks. Majority of the marketers are not able to repay their indebtedness to the banks, making it impossible for them to secure new facilities from the banks to finance fuel import.

“We want the Federal Government to pay the debt owed marketers as it is only then will we be able to repay our debts to the banks and secure fresh credit facilities from the banks to enable us finance our fuel import.”

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He revealed that most of the oil marketers had suspended buying fuel even though they had been approved by the Petroleum Products Pricing Regulatory Agency, PPPRA, to import.

The source noted:“We have approval to import fuel, but we do not have money to finance the import. The banks told us that they have a ceiling for borrowing and they have reached their borrowing limit, with oil companies accounting for a substantial portion of the loans.

“We are asking the Federal Government to pay us the claims we are being owed so that we can have money to offset our debts and finance fuel imports.”

The impact of the scarcity is currently affecting the nations capital Abuja, as petrol is being sold as high as N250/l in Abuja.

READ ALSO: Fuel Scarcity: Petrol Now Sells At N200 Per Litre On Black Market

The fuel scarcity has caused petrol stations to sell at between N120 and N140 per litre, while others prefer to sell to black marketers.

These activities are mostly done at night to escape sanctions from authorities.

In Abuja, stations are said to be selling petrol to black marketers at between N120 and N140 per litre, while these marketers resell at N160 to N250 per litre.

These black marketers surrounded the entrance of almost all petrol stations, showing off their wares which they carry in 10-litre plastic gallons.

Mega stations such as Conoil and NNPC were selling but had queues stretching for about three kilometres, impeding traffic around the area.

This prolonged scarcity of fuel in the nation has made motorists accept that it may become part of life.

In Lagos, all independent or major marketing outlets, which had the scarce commodity, are selling petrol above the regulated price of N87/litre to motorists and other users of the product.

The sold their petrol at a higher price, despite threats to face sanctions.

Despite this aggrieved motorists are chosing to buy from black marketers who sell at extreme cost of N250 and N300/litre depending on the area in the black market.

One motorist told Vanguard that the FG has to take huge responsibility for the lack of petrol.

Meanwhile opportunists are taking this chance to make fast money, as some women and kids are now hawking petrol in strategic locations around the state.

The hawkers sell to motorists who cannot afford to stay in queue for hours on end.

DAPMA are trying to recover all the money owed to them by the FG before the change of administration which might complicate the current issue.

Loading depots at Apapa have already been suspended while tankers used in transporting fuel have been abandoned at Oshodi/Apapa Expressway.

Source: Legit.ng

Authors:
Khadijah Thabit avatar

Khadijah Thabit (Copyeditor) Khadijah Thabit is an editor with over 3 years of experience editing and managing contents such as articles, blogs, newsletters and social leads. She has a BA in English and Literary Studies from the University of Ibadan, Nigeria. Khadijah joined Legit.ng in September 2020 as a copyeditor and proofreader for the Human Interest, Current Affairs, Business, Sports and PR desks. As a grammar police, she develops her skills by reading novels and dictionaries. Email: khadeeejathabit@gmail.com

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