what causes the fuel shortage you're currently experiencing
Fuel shortages have been reported in Lagos, Kaduna, and other locations around thenation over the past week.
According to a previous Nairametrics analysis, the harassment of tanker drivers in Lagos is to blame for the city's fuel shortage. We have learned that there are additional reasons why you currently lack gasoline, though.
The Deputy National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Zarama Mustapha, recently discussed a few causes of fuel scarcity in some cities in an interview with Channels Television.
He explained that when the Nigerian National Petroleum Company (NNPC) Limited has imported gasoline into the nation, the product is transported by truck from the mother vessel to the depots and then to various retail locations throughout the nation where it is sold to customers.
Recent issue: The discharge of gasoline from the mother vessel to the depots was delayed last week due to disagreements between the owners of private depots and the NNPC, the primary supplier of gasoline. The difficulties stemmed from private depot owners who collected gasoline at the permitted price per litre but refused to sell it to independent marketers at the price stipulated by the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA).
Petrol is priced at N148 per litre in NNPC depots, but private depot owners sell to IPMAN for N195 to N210 per litre. Due to the rising cost of the dollar, owners of private depots are dissatisfied with the price of transportation from the mother vessel to their depots. Owners of private depots purchase their money on the underground market.
Private depot owners are required because the NNPC's storage capacity after importing gasoline is insufficient. Private depot owners who have the necessary infrastructure can store gasoline as well. There are problems throughout the entire petroleum supply chain, including distribution and refining.
Impact of security agencies: According to Mustapha, interacting with security agencies, such as the police and the military, presents a difficulty to the distribution of gasoline. He claims that the cops are frequently seen at roadblocks and loading zones around the nation, which has an impact on the chain of the supply of gasoline. He stated:
"If you go to Lagos right now, you will see chaos at the depots; people take three days to load a product that should take no more than three hours."
Yuletide will soon arrive: Mustapha stated his conviction that the NNPC management, governing bodies, and other stakeholders are making every effort to ensure that there will be a plentiful supply of gasoline during this yuletide season, which is still one month away. He was negative, though, about the intermittent gasoline shortage, which he claimed required action from the regulatory organizations, NNPC, and private depot owners.
Mustapha claims that previous administrations did not adequately plan for the country's population increase and rising need for petroleum supplies. He claimed that the difficulties are too great for one government agency to handle.
The required remedies: Nigeria, according to Mustapha, has to have the ability to refine its own oil. He claims that the combined refining capacity of the refineries in Port Harcourt I and II, Warri, and Kaduna is just 450,000 barrels per day (bpd), much short of the required amount. In order to make up for the capacity differential, the nation will require the Dangote Refinery.
Mustapha also emphasized the need for regulatory bodies to work with private depot owners and the NNPC to determine how to best achieve the best pricing for the average person who is suffering from the shortage and pointed out that IPMAN cannot operate at a loss. The nation also needs to build more storage depots.