Minister of State for Petroleum, Dr. Ibe Kachikwu, has reiterated the commitment of the Nigerian National Petroleum Corporation (NNPC) to end the lingering fuel scarcity in the country this week.
Kachikwu gave the assurance during an official visit to the Petroleum Products Pricing Regulatory Agency (PPPRA) on Tuesday in Abuja.
He said that by Thursday, there would be no queues in Abuja and Lagos filling stations.
“We have to take the right policies to see that things are done well.
“I hope that tomorrow slash Thursday queues in Abuja must have cleared; hopefully the same thing will happen in Lagos.
“By weekend, we will see same in Sokoto, Port-Harcourt, Warri and others,’’ he said.
He called on members of staff of the agency to continue to work diligently to ensure efficiency in the system.
The minister said that PPPRA remained a major stakeholder in the regulation of the sector.
Mrs Sotonye Iyoyo, the PPPRA Acting Executive Secretary, commended the minister and solicited his support for the smooth running of the agency.
Iyoyo said that the agency was faced with policy, operational and administrative challenges.
According to her, low capacity utilisation of nation’s refineries, inadequacy of import reception and discharge facilities are some of the operational challenges.
On administrative challenge, she said that the agency was currently understaffed as field operations were being supported by temporary staff.
She called for early resolution of these issues to help motivate staff to ensure result and increase in productivity.
The scribe said that going forward, the agency would want automation of the PPPRA operations for improved efficiency and transparency.
“Development of a pricing frame work to encourage local refining and discourage importation of petroleum products in long term.
“Immediate passage of the PIB to provide a vibrant legal and regulatory framework for the oil and gas industry,’’ she said.
On how to improve the supply of petrol, she said NNPC should negotiate with Indorama Petrochemical Eleme not to export cracked C5 especially during the fuel scarcity.
“Cracked C5 is an important refining blending component to boost PMS volume.
“The component can be supplied to the refinery in exchange for Propylene Rich Feed (PRF) from fluid catalytic cracking unit,’’ she said.
She said that the agency in conjunction with other stakeholders could work out the commercial frame work for the strategic fuel reserve.
Iyoyo said that marketers should encourage the development of Single Buoy Mooring to eliminate delays during discharge operations at the jetties.
Meanwhile, residents of Badagry, Lagos have cried out over non availability of petrol at filling stations in the area as well as the prohibitive cost of the product at black markets.
In the area, only three stations sell petrol in Badagry and Seme with the cost ranging from N200 to N450 per litre.
While the cost of the product ranges in Badagry for between N200 and N220, in Seme the price ranges from N400 and N450.
The only station that had stock, sells the product at an adjusted pump price of N280 per litre, while at the black market; it sells for between N400 and 450 per litre.
The scarcity of the product had obviously affected transportation fares, which had increased by as much as 100 per cent.
A trip from Badagry to Seme, which used to cost N100 by taxi, has increased to N200, while Topo to the Agbalata Market increased from N50 to N100.
A motorist, Olumide Oguntayo, who lamented the high cost of transportation, urged the government to find a lasting solution to the problem.
“This has been a recurring problem. The scarcity should come to an end once and for all, because this situation is worrisome. Government should find lasting solution because we can’t keep on going this way all the time’’.
Mr Dayo Ekundayo, a shop owner noted that the current situation had brought hardships to his family as his business had virtually ground to a halt.
“You cannot imagine the suffering we have been going through because of the present situation. There is no electricity, no petrol to power our generating sets and the heat has been unbearable.
“Things must change in this country because we can’t keep on going like this’’.
A petrol dealer at Ikoyi, Badagry claimed that some people purchased petrol for N170 per litre at a depot in Lagos.
“Some purchased petrol for N170 per litre at the depot and so re-sell the product at N200 per litre, so as to make profit’’.
In a related development, a member of the National Assembly, Senator Mao Ohuabunwa, on Tuesday, urged the Federal Government to deregulate the oil sector to end recurring petrol scarcity in the country.
He also called on the government to apologise to Nigerians for the hardship being experienced due to the protracted scarcity of the product.
Ohuabunwa said in Abuja that deregulating the sector remained the best way out of the problem of incessant scarcity of petrol in the country.
“For me as a person, the best way to go is deregulation because when you deregulate, you allow the market forces to determine the price.
“Although, initially it might be difficult in terms of price like we had in the telecommunication industry when sim cards sold for over N20,000 but today it is given almost free.
“It is very clear that this scarcity has gone off hand; we cannot manage it, we have been on it for over two months now.
“If they want to deregulate, fine let us go all out, whatever we want to do, this is the right time because we cannot continue this way,’’ he said.
He recalled that it All Progressives Congress (APC) members that championed mass protests when the previous government attempted to deregulate the sector.
According to him, if the deregulation had been allowed to go through, Nigerians would not be going through the hardship they are currently experiencing as a result of the scarcity.
“It is unfortunate that Nigerians would have to go through this hardship in the midst of plenty: we are acclaimed the fifth largest oil producing nation,’’ Ohuabunwa said.
“The Minister of State has said it would abate in two weeks time but the Minister of Petroleum who is President Buhari has not said anything.
“We should look for a lasting solution so that we do not relapse into this again,” he added.
He said that it was “important that the government in power should apologise to Nigerians because the level of hardship is getting too much.
“You remember that some time in 2012, the then government wanted to deregulate, most of those in government went round town calling the government names and almost brought the government to a standstill.
“But you can see now that we are deregulating through the backdoor because throughout this Easter season, down the East and South, I doubt if there is anywhere any person bought fuel anything below N150.
“Now it is between N180 and N200 per litre, so you can see that indirectly, we are deregulating through the backdoor”.
He called on the Federal Government to not only look for a way to ameliorate the suffering of the people but to find a lasting solution to the problem.
