• Friday, April 19, 2024
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Fuel crisis looms as PPPRA delays Q1 allocation to marketers


After some level of relative stability in the supply of premium motor spirit (petrol), the country is set to face a major supply crisis as the Apapa depots which supply over 33 percent of the petrol needs of the nation have been seriously depleted and it has just five days sufficiency level.

The Major Oil Marketers Association of Nigeria (MOMAN) has therefore cautioned the Federal Government over looming fuel scarcity in the country over non-approval of importation allocation of petrol for the first quarter (Q1).

Obafemi Olawore, executive secretary of MOMAN, who drew the attention of the government to the situation on ground, said that with the current depletion rate in stock level of fuel, if urgent steps are not taken

Nigerians may be thrown into a fresh round of acute fuel shortage.

According to him, government should not allow the delayed approval of importation allocation to marketers degenerate to fuel scarcity when the country is running out of stock.

“MOMAN depot at Apapa which controls about 33 percent of national demands has only five days petrol sufficiency, which literarily means, we are gradually running out of stock.

“As we speak, some three big major oil marketers in the country have totally run out of stock, government should not encourage the situation of allowing only Pipelines Products and Marketing Company (PPMC) to import fuel.

“PPMC cannot meet up with the demand of importation Nigeria required and to avoid previous experience on petrol scarcity, government should not entrust importation on PPMC hand”.

He said that non approval of the first quarter importation allocation by the Petroleum Products Pricing Regulatory Agency (PPPRA) posed a serious threat to all oil marketers.fuel-queue

“The downstream is currently on edge and anxiety is mounting among fuel marketers because of the non-release of the approval for first quarter importation.”

The executive secretary said that government had not paid over N120 billion to major marketers on subsidy claims for third and fourth quarters in 2013.

“We are yet to receive over N100 billion on our subsidy claims in third and fourth quarters of 2013; while about N20 billion that had been incurred on accumulated interest and foreign exchange rate is yet to be paid”.

Olusola Bello