Fuel Scarcity: Marketers Say Supply Limited by Logistics Issues

Oil marketers have attributed the current fuel scarcity to ongoing logistics challenges affecting the supply of Premium Motor Spirit (PMS), commonly known as petrol. Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), disclosed this during an appearance on Channels Television’s Morning Brief on Monday.

Gillis-Harry explained that oil marketers are currently facing significant supply constraints, allowing them to distribute only what is available. “Until we efficiently and abundantly resolve our supply challenges, we won’t be able to break out of this cycle,” he said. He emphasized that the Nigerian National Petroleum Company Limited (NNPCL) has acknowledged these challenges, which are primarily related to logistics.

“The logistics issues involve ship-to-ship transfers,” Gillis-Harry elaborated. “Until ships receive products, they can’t deliver to depots, and without products in depots, retailers like us can’t access them.” He assured that ongoing discussions with NNPCL are focused on addressing these supply issues, noting that NNPCL is making efforts to bring in products gradually.

The scarcity, which initially affected northern Nigeria, spread to Lagos over the weekend, with reports of petrol prices rising to between ₦800 and ₦1,000 per liter at some filling stations. This has, in turn, driven up transportation costs. Some stations have run out of stock, leaving black market vendors to exploit the situation.Recent reports linked the fuel shortage to debts owed by NNPCL to international oil traders.

However, in a statement on Sunday, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, refuted these claims. Soneye acknowledged that it is common in the oil trading business to have outstanding payments, noting that NNPCL pays its obligations on a first-in, first-out (FIFO) basis.