General News
Fuel Scarcity to Persist for Two More Weeks, Says IPMAN
By Iyojo Ameh
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that the ongoing fuel scarcity plaguing the nation will last for an additional two weeks. Mr. Chinedu Ukadike, the association’s spokesperson, cited challenges in sourcing the product due to refinery maintenance in Europe and importation bottlenecks as contributing factors.
According to Mr.
He revealed that the scarcity is a result of disruptions in the international supply chain, further compounded by the maintenance shutdowns of several European refineries.
Mr. Ukadike highlighted the slow pace of license renewals by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) as a significant challenge.
Out of 15,000 marketers registered on the NMDPRA portal, only 1,050 have successfully renewed their licenses, causing further constraints on supply distribution.
The situation has led to queues at filling stations across the country, with consumers experiencing difficulties in accessing fuel for their daily needs. Mr. Ukadike expressed optimism that with the arrival of NNPC vessels and efforts to streamline the licensing process, supply chains would gradually stabilize.
Ukadike said, “The situation is that there is no product. Once there is a lack of supply or inadequate supply, what you will see is scarcity and queues will emerge at filling stations.
“On the part of NNPCL, which is the sole supplier of petroleum products in Nigeria, they have attributed the challenge to logistics and vessel problems.
“Once there is a breach in the international supply chain, it will have an impact on domestic supply because we depend on imports. I also have it on good authority that most of the refineries in Europe are undergoing turnaround maintenance, so sourcing petroleum products has become a bit difficult.
“NNPC Group CEO has assured us that there will be improvement in the supply chain because their vessels are arriving. Once that is done, normalcy will return. This is because once the 30-day supply sufficiency is disrupted, it takes two to three months to restore it.
“We expect that by next week or so, NNPC should be able to restore supply and with another week, normalcy should return”.
On the challenges faced by marketers in renewing their licences, Ukadike said:
“NNPC has said the marketers who have not been able to renew their licences will not be allowed to remain on their portal which has been shut for some time now. Because of this, we have not been able to request new products.
“At this nascent period of deregulation, you will discover that this leads to scarcity, even when the product arrives. As it is now, even by their data, out of 15,000 marketers that are on the portal with licences, only 1,050 renewed their licences.
“The requirement for renewal by NMDPRA is so much. Marketers are facing a hostile environment. NNPC placed a deadline of April 15, 2024, for marketers to renew their licences.
“We are, therefore, appealing to NNPC to extend this deadline and also to NMDPRA to hasten the release of licences of marketers who have completed their processes, and also reduce bottlenecks around licence renewals”.
In response to the licensing issues, IPMAN called on NNPC to extend the renewal deadline and urged the NMDPRA to expedite the release of licenses for compliant marketers. The association emphasized the need to alleviate bottlenecks surrounding license renewals to mitigate future scarcity incidents.
