Fuel scarcity: We will supply only what we have — Oil marketers

This information was shared by the President of the Petroleum Products Retail Outlets Owners Association (PETROAN), Billy Gillis-Harry, during an interview this morning.

He explained that oil marketers are facing supply constraints and can “distribute only what we have.”

Gillis-Harry stated, “I believe that until we effectively and abundantly resolve our supply challenges, we will remain trapped in this cycle. You may have heard the NNPC’s communications director mention that the issues are still related to logistics. Until these are addressed, we will be managing the limited supply available to us for distribution among our members. NNPCL is doing its best to bring in products gradually, and we can only supply what we have.”

When asked to elaborate on the logistics challenges, he explained, “The logistics issue pertains to ship-to-ship transfers. A ship must receive products before it can deliver to any depots, and without products at the depots, we retailers cannot access them either.”

He assured that marketers are in discussions with NNPCL regarding supply issues. “We have been in communication with NNPCL, encouraging them to increase their efforts, and I can assure you they are doing their best.”

Gillis-Harry’s comments on the scarcity follow ongoing product shortages, particularly in the northern regions of the country, which have now extended to Lagos over the weekend.

Reports reveal that the price of petrol has surged to between ₦800-₦1,000 per litre at some filling stations, leading to increased transportation costs. Some stations have stopped selling the product entirely, allowing black market sellers to thrive.

Last week, reports suggested that the shortage was linked to debts owed by the Nigerian National Petroleum Company Limited (NNPCL) to international oil traders. However, in a statement yesterday, Chief Corporate Communications Officer Olufemi Soneye refuted these claims.

Soneye acknowledged that it is common for the company to have debts at times, as oil trading is typically conducted on credit. “However, NNPC Ltd., through its subsidiary NNPC Trading, maintains numerous open trade credit lines with various traders. The company pays its obligations for related invoices on a first-in-first-out (FIFO) basis,” he stated.