Fuel Scarcity To Worsen As Only 2 Vessels Berth

Fuel Scarcity To Worsen As Only 2 Vessels Berth

There are strong indications that the current scarcity of the premium motor spirit (PMS), popularly known as fuel, will get worse as only two vessels with 71,100 metric tonnes (mt) (about 97 million litres) dock at the Lagos port.

According to the shipping data released by the Nigerian Ports Authority (NPA) for this week, as at March 2, 2015, the vessels, Rainbow Quest with 33,000mt and Glenda Meryl loaded with 38,100mt await berthing at the SBM.

The figure is compared to the 147,600mt (about 201.4 million litres) of PMS which was the volume awaiting berthing at the jetties as at February 19.

While all other vessels awaiting to berth as at February 19 have discharged, the Rainbow Quest is yet to discharge its 33,000mt, indicating that it has only been joined by one vessel, the Glenda Meryl, in the last two weeks, a clear indication that the product is not coming in. The figures confirm fears that the marketers are not importing the product as was indicated by recent reports that the Major Oil Marketers Association of Nigeria (MOMAN) has stayed away from importation of fuel due to non-payment of outstanding subsidy claims by the federal government.The MOMAN is said to be responsible for the importation of about 60 per cent of petroleum products consumed in the country. About 40 million litres of PMS are used by Nigerians daily.

The executive secretary of MOMAN, Mr Olawore Obafemi, has also said the rise in cost, occasioned by the falling naira value has also contributed to the hindering factors, making it impossible for the marketers to import petrol into the country since February. However, 140,700mt of fuel (about 192 million litres) are expected at the ports in Lagos this week.

Sadly, not all expected vessels berthed at Nigerian ports due to factors peculiar to shipping and international trade. The bulk of the cargoes are also diverted to neighbouring ports. Against the claims of the MOMAN, the minister of finance and coordinating minister of the economy, Dr Ngozi Okonjo-Iweala, on Tuesday said contrary to claims of non-payment of subsidy, the federal government paid the marketers a total of N320.8 billion from the Excess Crude Account in two installments in December last year, saying that the government had reached an agreement with the marketers union on the N185 billion balances of their payment and touching on the marketers’ other core concerns which the government had addressed.

The minister said that government had reached an agreement with the marketers’ union on the N185 billion balances of their payment. Attributing the situation to a mix of factors including disruption of pipelines and logistical issues, the minister assured that they are being addressed.

She noted that as part of this agreement, it would pay the costs they incurred, their fees and interest and forex differentials.