August 19, 2024
By Adedoja Adesoji
The Petroleum Products Retail Outlets Owners Association (PETROAN) has linked the ongoing shortage of Premium Motor Spirit (PMS), commonly known as petrol, to persistent logistical difficulties.
In an interview with Channels Television on Monday, PETROAN President Billy Gillis-Harry stated that oil marketers are currently facing supply limitations and can only distribute the available inventory.
Gillis-Harry elaborated that these logistical problems involve ship-to-ship transfers, which obstruct the delivery of products to depots and, in turn, to retailers.
He noted, “Unless we address our supply challenges effectively and in sufficient quantity, this cycle will persist. You might have heard the NNPC’s communications director mention that the current issues are still related to logistics.”
Gillis-Harry added, “Until these issues are resolved, we will continue to manage the limited supply we receive for distribution among our members. NNPCL is working to deliver products incrementally, and we can only distribute what we have.”
He further clarified that the logistical problem pertains to ship-to-ship transfers, saying, “A ship must first receive products before it can deliver them to depots. Without products at the depots, retailers also cannot access them.”
Gillis-Harry confirmed that marketers are in discussions with the Nigerian National Petroleum Company Limited (NNPCL) to address the supply issues, adding, “We urge them to increase their efforts, and I assure you they are doing their utmost.”
His comments on the scarcity follow ongoing shortages, particularly in the northern regions, which have now extended to states like Lagos.
This scarcity has driven up prices, with petrol costing between ₦800-₦1,000 per litre at some stations, and black market operators have reportedly exploited the situation.
While some reports have suggested that the shortage is due to debts owed by NNPCL to international oil traders, the company’s management has refuted these claims, asserting that NNPCL fulfills its payment obligations on a first-in-first-out basis.
NNPCL explained that although it operates on credit terms in the oil trading sector, it remains current with its payments and maintains open credit lines with multiple traders.
The company clarified, “NNPC Ltd. does not owe $6.8 billion to any international traders. In oil trading, transactions are conducted on credit, so it is common to have some level of debt at times. However, NNPC Ltd., through its subsidiary NNPC Trading, holds numerous open trade credit lines and is up-to-date with its payment obligations, adhering to a first-in-first-out (FIFO) payment method.”
