Fuel Crisis/Hoarding: Nigerian regulator set to inspect oil tanks at filling stations, depots

*Nigerian oil marketers urge the Federal Government to release the petroleum products trapped in seven depots the Nigerian Midstream and Downstream Petroleum Regulatory Authority recently sealed off, at the regulated rate of N148/litre towards addressing the current petrol scarcity in some states of the Federation

Isola Moses | ConsumerConnect

As part of measures aimed at ensuring availability of petroleum products in the country, oil marketers Sunday, January 1, 2022, urged the   Federal Government to evacuate and dispense the products currently trapped in seven depots, which the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), also known as ‘The Authority’, recently shut over infractions.

ConsumerConnect reports the oil marketers said the products should be dispensed at the regulated rate of N148/litre towards addressing the scarcity of Premium Motor Spirit (PMS), popularly called petrol in some states of the Federation.

However, the NMDPRA reportedly noted that it had done its calculation to ensure that the effect of the shut erring depots did not significantly impact the affected zones.

Meanwhile, The Authority has disclosed that it will  commence inspection of  fuel tanks of filling stations and other depots towards halting the hoarding of petrol in Nigeria.

How the government shuts seven oil depots over irregularities

The Federal Government Saturday, December 31, had announced that it sealed off operations of seven depots in various locations across the West African country for dispensing petrol at outrageous prices to retail outlets.

Farouk Ahmed, Chief Executive of NMDPRA,  who disclosed this development to reporters in Abuja, FCT, said the infractions committed by the affected depots contravened the provisions of the Petroleum Industry Act (PIA) 2021, and also contributed to the recent PMS supply crisis in the downstream oil sector of the Nigerian economy.

Reacting to the situation, Mohammed Shuaibu, Secretary to the Independent Petroleum Marketers Association of Nigeria (IPMAN) Abuja-Suleja axis, also told The Punch, that the government should go beyond shutting down oil depots.

Shuaibu suggested: “It is not just by shutting down the depots.

“If you shut down the depots when there are products in them, and you didn’t evacuate the products at the regulated price to the public, then you may end up causing more PMS supply problems.”

He stated: “If you are a regulator, go in there and enforce; let them open the gates, bring in tankers to evacuate the products to the public so that there will be surplus fuel that will help in driving down the price.

“But by the time you shut down the depots and the products remain in their tanks, we won’t get the products, and who suffers when two elephants fight? “The masses will suffer and we are suffering now. These are the consequences.”

Shuaibu also said: “So, the NMDPRA should open up the depots and allow them to dispense the products at the regulated price.

“It must also make sure it monitors it to the letter.

“But by the time you shut down and tomorrow open, and these are businessmen, are you helping the situation or causing more harm?”

The IPMAN Secretary noted: “These people have products and you are shutting them down, why not regulate it if you want to enforce it?

“And if anyone is found wanting, punish the person, not by shutting down.”

Nonetheless, the NMDPRA has dismissed fears that the shutdown of depots could worsen the fuel scarcity in several parts of the country.

Ahmed said, “In shutting down the depots, we calculated to see what effects it would have on the flow and distribution of petroleum products.

“We have enough products across the country.”

The NMDPRA Chief Executive also explained: “We also looked at the availability in other depots within the zones and we realised that even though we shut the seven depots, the effect on the supply within those zones is not going to be significant.

“It will also help us by making those who are hoarding bring out the products because the next level is to go and start checking the tanks of petrol stations and depots to ensure that no marketer or retailer is hoarding the product.”

There has also been distribution by trucking, and the next line of action is to monitor the trucks to ensure they are delivered at the various destinations as assigned, said he.