Officials of the Nigerian National Petroleum Corporation leave Nigerians guessing the real reason long queues are back at major petrol stations across the country

Even President Goodluck Jonathan’s critics credit his administration for relative stability of petroleum supply, except earlier in the year when the subsidy removal saga led to queues at petrol stations. But that was resolved and the queues disappeared. Nigerians were therefore surprised when queues resurfaced in Abuja and Lagos last week.

Marcus Odelola, an accountant in Lagos, expressed disappointment over the present fuel scarcity that has brought queues back to Lagos. Already, the effect of the scarcity is being felt as transportation cost has gone up by as much as 50 per cent in some areas. Tokunboh Korodo, South-west zonal chairman, Nigerian Union of Petroleum and Natural Gas workers, NUPENG, painted a sorry picture of the situation. "Most depots in Lagos and environs are dried up. Few of them that have the product are rationing it because of fear of the unknown. Depot that use to lift product for 24 hours hardly do so for six hours daily due to non-availability of products. If care is not taken the whole of Nigeria will soon witness fuel scarcity," Korodo warned.

Isiaka Yahaya, auditor general, Sahara Unit, Petroleum Tanker Drivers, PTD, warned last week that the scarcity of petroleum products might linger in Lagos for some time as trucks loaded products at only one depot out of the more than 10 in Apapa. "Before, 200 trucks were loading, but now hardly would 60 trucks load in a day," he said. The distribution is further handicapped because it is only Nigerian National Petroleum Corporation, NNPC, that is supplying petrol to the market at the moment, as no marketer is importing and supplying to the market.

The situation may likely get worse if the ultimatum issued by the Jetties and Petroleum Tank Farm Owners of Nigeria, JEPTFON, to the federal government is carried out. JEPTFON accounts for about 60 per cent of the nation’s total fuel distribution facilities, and some of its members are currently helping the NNPC to distribute petroleum products pending when the NNPC resumes distribution through the pipelines. The body, which gave government until last Wednesday to remove security operatives stationed at the premises of Integrated Oil and Gas Depot, one of its members in Apapa, Lagos, warned that it would shut depots and tank farm facilities of its members across the country if government failed to accede to its request. The body issued the threat following the alleged forceful invasion and take-over of Integrated Oil and Gas Depot by armed men on the orders of the Nigeria Maritime Administration and Safety Agency, NIMASA.

Enoch Kanawa, executive secretary of the association, insisted that only the department of petroleum resources, DPR, is empowered by law to close down a farm tank. Integrated Oil and Gas was recently shut by NIMASA for allegedly storing stolen petroleum products in its tank farm. It is believed in some quarters that the company had provided evidence of the requisite approvals by the DPR and the Nigerian Navy for the clearance of the vessel to its depot.

The question being asked in many quarters is, what is responsible for this current scarcity? Abisola Fadairo, an attendant with Fatgbems filling station along Lagos–Ibadan expressway, attributed the scarcity to vandalisation of an oil pipeline at Arepo. Fidel Pepple, acting group general manager, Public Affairs Division, NNPC, confirmed that theory last week. According to him, as at September 13, the corporation had enough supply to last for 32 days and that the scarcity that led to long queues was due to the vandalisation of the system B2 line that passes through Arepo, Lagos. "The volume (petrol) that we are able to dispense on a daily basis is far less than we used to do when the pipeline was operational. We have taken steps to rectify that by improving our trucking distribution and using more of the private depots for dispensing," Pepple explained. The system 2B is a major pipeline that evacuates between nine to 11 million litres of fuel from Lagos to other depots; it was vandalised a couple of weeks ago, meaning that petroleum products cannot be pumped from the Atlas Cove Jetty to the depots in Ejigbo, Lagos; Mosimi, Ogun; Ore, Ondo; Ibadan in Oyo, and Ilorin, Kwara state.

However, the magazine found out that there is more to the scarcity than pipeline vandalism. Industry sources in the oil sector reliably informed the magazine that what is currently being experienced is a prelude to the eventual removal of full subsidy on petroleum products. Across most filling stations in Lagos, a litre of petrol sold for as much as N170. The failure of the federal government to pay the petroleum marketers’ claim under the Petroleum Support Fund, PSF, has also contributed to the scarcity, as most of the marketers were no longer importing product due to the mounting debt they are owed. Oil marketers claimed that in the last 18 months, the federal government owed them about N200 billion in subsidy claims. The non-payment of this money is said to be causing hiccups in the operations of the marketers.

To ease the scarcity, NNPC has resorted to distributing its products by trucks. The Pipelines and Products Marketing Company, PPMC, increased petroleum product supply to private depots, while also increasing the petrol allocation to five private depots from 100 trucks to 300 trucks daily. Two new private depots had also been engaged to distribute 200 to 300 trucks of petrol to coastal areas such as Port Harcourt and Aba, as well as to the northern part of the country. Pepple gave the names of such depots as Capital Oil and Gas Industries Limited, MRS Oil and Folawiyo Energy, while new private depots have been engaged to commence distribution of about 250 to 300 trucks of petrol on daily bases to the coastal areas.

Meanwhile, NNPC is unable to guarantee the repair of the vandalised pipelines because it cannot secure the lives of its staff. A team of engineers and technicians earlier sent by the NNPC to effect the repairs on the damaged pipeline at Arepo was attacked by suspected oil thieves, killing three officials of the corporation in the process. Pepple said no staff of NNPC would be sent to the vandalised pipeline unless there is assurance of their safety. "We are working with the security agencies and as soon as the security forces give us the green light that it is safe, we will return there," he assured.

Perhaps, when the vandalised pipelines are repaired, and perhaps, if the federal government accedes to the demands of the marketers, then Nigerians may have a reprieve. But there are no assurances that any of these will happen, which is why Nigerians may have to brace up for tougher times ahead