Nigerians face a bleak Christmas as fuel scarcity has caused motorists to raise fares.

Many depots are out of the product, reducing supplies to retail stations nationwide.

In Abuja, many filling stations remained closed due to a lack of products, while the few outlets of major marketers that dispensed petrol saw lines from midday to evening on Wednesday.

Conoil and Total petrol stations opposite NNPC's headquarters had lines Wednesday afternoon and evening.

A filling station opposite the Transcorp Hilton Hotel in the FCT saw massive queues in the evening, despite being closed to motorists, as attendants offloaded a fuel tanker.

Oil marketers told one of our correspondents that the Department of State Services ordered the NNPCL to clear the lines.

The order to NNPCL and marketers caused the national oil company to release large volumes of product, but this only temporarily eased the fuel crisis.

Mohammed Shuaibu, secretary of the Independent Petroleum Marketers Association of Nigeria, Abuja-Suleja, said the NNPCL still has a PMS supply shortfall, citing re-emerging queues in Lagos, Abuja, and other cities.

He said the NNPCL was focusing on Abuja and Lagos city centres while neglecting outlying areas, where petrol costs over N200 per litre and there are long lines.

Shuaibu said, "There's a supply shortage, but the NNPCL will tell you not to panic and that they have products." Our depots are empty.

"No petroleum marketer who built or borrowed money to invest in a filling station will close it without a good reason."

Shuaibu said Abuja's Suleja Depot was empty when asked. All Suleja Depot products are bridged.

"Down south, depot owners charge a premium." The NNPCL should be accountable. Explain why the product isn't in circulation.

Tanks

Benneth Korie, president of the Nigerian Natural Oil and Gas Association, said many filling stations are closing due to a lack of PMS and access issues.

"We sacrifice a lot by losing money every day," he said. Nigeria has lost many petrol stations. How many depots sell fuel?

Availability of petrol in Nigeria is the problem facing downstream operators, not price.

Korie said the price of PMS at major marketers' filling stations was below N200 per litre because they got their products directly from NNPCL.

He said independent marketers sometimes bought from major marketers, so petrol at their stores was usually more than N200 per litre.

"We're all marketers, but how you get your product matters." We (major marketers) get our products from them (NNPCL) (the major marketers). "We won't sell less than them," he said.

NOGASA's president noted that the rise in diesel prices also affected petrol supply and cost.

Diesel prices are a major cause of petrol price hikes and scarcity," he said. PMS is transported across the country using diesel. PMS-carrying ships use diesel.

Diesel fuels depots, filling stations, etc. This contributes to high petrol prices. Who would sell PMS at the current price if diesel were N170 per litre, as it was a few months ago?

The NNPCL, the sole importer of petrol into Nigeria for years, has remained silent on the country's fuel crisis.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority, which claimed NNPCL had enough products, failed to prove this or stop marketers from selling petrol at exorbitant pump prices.

2.5bn litres

The PUNCH noted that fuel scarcity worsened despite the NNPC's claim that it had imported over 2.5 billion litres of petrol.

In Lagos, motorists were seen waiting in long lines at gas stations.

Oil marketers in Lagos told The PUNCH that private depot owners kept raising prices, as petrol was sold to filling stations for more than N200 per litre.

"Our members don't have products because NNPCL isn't giving them to us," said the chairman of the IPMAN satellite depot, Akin Akinrinade, to The Punch.

The association gave the federal government a seven-day ultimatum over price disparities between its members and the Major Oil Marketers Association of Nigeria.

MOMAN members and depot owners buy directly from NNPCL at N148 per litre, while IPMAN members buy from private depots for N220 per litre.

Our correspondent found that NNPCL stations sold gasoline for N169 per litre, MOMAN stations for N170 per litre, and IPMAN stations for N250 per litre, depending on location.

Many motorists and fuel users rushed to NNPCL retail stations to buy fuel at N169 per litre, worsening motorway traffic.

Depot owners blamed the increase in the PMS ex-depot price on high vessel rental costs, illegal fees, and a lack of foreign exchange at the Central Bank of Nigeria's official rate.

Olufemi Adewole, executive secretary of the Depots and Petroleum Products Marketers Association of Nigeria, told The Punch that renting a vessel rose from $65,000 to $75,000 per day to $80,000 per day last week.

A reliable source told The PUNCH that both NNPC and depot owners vowed to adopt a "recover all cost" policy.

Garba-Deen Muhammad, the NNPCL's spokesperson, refused to comment on the fuel shortage despite calls and emails.

Drivers, and passengers complain

Drivers and passengers bemoaned high fuel and fare prices on Wednesday, as Christmas and New Year celebrations approached and many citizens prepared to travel out of Lagos and other states.

Every December, people travel to visit loved ones for the holidays.

Fuel shortages have led to a sharp increase in transportation fares.

Passengers complain about rising fares, but drivers and transport companies blame low oil supplies.

Our correspondents visited motor parks in Lagos where passengers board vehicles for other destinations.

Passengers at Berger's Alalubarika Park said they paid twice the fare to Ibadan. Akibu Falana said Ibadan's fare doubled.

"I know that transport fares rise during times like this, but not like this," he said. Before, I paid between N1,500 and N1,700 to travel to Ibadan. Today, I paid N3,000.

"We urge the government to address the fuel shortage, which is driving up fares."

Omotola Gaji, a parked driver, said petrol costs N270 per litre, up from N175.

Many think drivers are greedy, but that's not true. I was at the gas station by 4 a.m. today. I filled up at 8 a.m.

"Now, at the park, I must queue again, and it's 3 p.m., so I've only been to Ibadan once today. Previously, I made two trips.

"Fares will rise because we use so much fuel at a high price."

At Ekeson Park's Power Line, all buses had gone to the east, with a minimum fare of N1,8000.

Compared to GUO Limited, which charged N22,000 and will charge N24,000 tomorrow, this was even better.

Angela Okoli, who travelled to Owerri with Ekeson today, accused transport companies of extorting passengers.

"I'm travelling to Owerri for N18,000," she said. Our people are extorting us during the holidays, which is outrageous.

"High fuel prices aren't a reason to raise fares." If care isn't taken, the fare could reach N30,000 on the 24th and 25th.

An anonymous driver said the price hike was company policy and they had to abide by it, adding that security issues in the East also contributed.

"Traveling in Nigeria is no longer safe, especially to the east; we take a lot of risks delivering people," he said.

Fuel costs are another issue. Despite fare hikes, people book and pay upfront to get seats.

(Source: centurypost.com.ng)