Fuel scarcity worsens power problem

Firstclass newsline learnt that the fuel scarcity has really affected
so many business in the country,it was learnt that a liter of the
product now sells for 200 to #600.

With the poor power supply most Nigerians now live in complete
darkness,some now make use of lantern,candle and other means.

Even before the dip in power generation, most Nigerian households have
been relying on generators as the main source of their power supply
while using the public power supply as a backup. However, the fuel
shortages which started over a week ago, have made it impossible for
households to even get fuel to power their generators.
Although, daily fuel consumption nationwide is about 40 million litres
per day, it is estimated that a sizeable proportion of the demand goes
into fuelling of generators.
"It is now impossible for me to get a four-litre fuel to run my
small generator," a man who was in the queue in one of the filling
stations, told one of our correspondents on Sunday.
Also, a resident of one of the upscale estates in Magodo, who
identified himself as John Adebayo, told one of our correspondents
that he had been unable to run his generator for three days because he
could not get diesel to buy.
"I have money to buy diesel but it is just not available anywhere. I
can't even pump water, it is really pathetic,"he lamented.
Already, the situation has started affecting companies with some firms
like MTN and Airtel saying that they could not get diesel to run
generators at base stations.
Unless urgent steps are taken by the Federal Government and all
concerned stakeholders, many citizens will find it difficult to get to
their various places of work and business as from today (Monday) due
to the crippling scarcity of refined petroleum products occasioned by
the refusal of marketers to import them and a strike by tanker
drivers.
Firstclass newsline reported on Sunday that petrol had dried up in
almost all the filling stations nationwide, while black marketers
capitalised on the prevailing scarcity by selling the product in jerry
cans for between N200 and N600 per litre in places like Lagos, Ogun,
Osun, Kaduna and Oyo states, as well as the Federal Capital Territory.
The situation affected vehicular movements in many parts of Lagos and
Ogun states on Sunday, with attendance at religious centres unusually
low, while commercial transport operators raised their fares by over
300 per cent.
All the filling stations owned by major oil marketers visited by a
source were under lock and key. Majority of the independent petroleum
products marketers were also not selling petrol on Sunday.
The very few independent marketers with petrol were selling the
product for between N150 and N400 per litre, while black market
dealers were selling for between N500 and N600 per litre in some of
the stations visited.
A motorist plying the Berger-Mowe route traversing Lagos and Ogun
states, who simply identified himself as Ola, expressed disappointment
with the slow response of the government to the problem, adding that
with the situation on the ground, workers would have to part with a
lot of money to get to their offices on Monday (today).
A commercial transport operator in Ikorodu, Lagos, told firstclass
newsline that he bought 30 litres of petrol for N12,000 instead of
N2,610 at the regulated price of N87 per litre.
It was learnt that virtually all the filling stations in Osun State
had run out of petrol as of Sunday, thereby forcing the residents to
stay indoors.
One of the petroleum products' marketer told a source that the Federal
Government had refused to meet them to resolve the lingering issues
surrounding the payment of the subsidy arrears owed the marketers.
The marketer, who pleaded anonymity, said since the last meeting they
had with the Minister of Finance, Dr. Ngozi Okonjo-Iweala, on May 4,
nothing had changed.
The Executive Secretary, Major Oil Marketers Association of Nigeria,
Mr. Thomas Olawore, said though the marketers had reached out to the
President-elect, Muhammadu Buhari, on the lingering fuel supply
problems, they had yet to get a positive response.
He confirmed that the marketers were not importing petrol at the
moment, because they did not have the wherewithal to do so.
The PRO for the Department of Petroleum Resources, Mr. Saidu Muhammed,
said the product scarcity was primarily due to the ongoing workers'
strike in the NNPC.
He said, "Products are not coming out from the depots and there's
virtually nothing anybody can do for now. But hopefully, when they
resolve the strike, things may become normal.
"The strike by the NNPC workers is affecting all the depots. And until
the strike is called off, there will be no loading. There is no
loading in almost all the depots across the country and so products
are not coming out."
Meanwhile, the Lagos Chamber of Commerce and Industry has noted with
concern the current energy crisis facing the country, which it
describes as unprecedented.
In a statement signed by its President, Alhaji Remi Bello, the LCCI
called on President Goodluck Johnathan to bring a halt to the imminent
collapse of economic and social life in the country.
Bello said, "There should be an immediate engagement of stakeholders
in the petroleum industry to discuss the outstanding issues of
indebtedness and related labour matters in the interest of the economy
and the citizens. The situation should not be allowed to degenerate
any further.
"The Lagos Chamber urges the incoming administration to immediately
deregulate the oil and gas downstream sector on assumption of office
in order to provide an enduring solution to the recurring problem of
petroleum products' scarcity, corruption inherent in the subsidy
regime, the collapse of refineries, lack of investment in the
downstream sector, loss of jobs and so on.
"Options available to the incoming administration in this matter are
very limited. The current regime of subsidy and government's direct
involvement in the operations of oil and gas sector should be
discontinued. Government needs to get out of the way, so that the
sector and the economy as a whole can make progress. This will pave
the way for the restoration of normalcy in the sector and attract
private capital, boost investments and create jobs."
Similarly, a Global System of Mobile communications provider, Airtel
Networks Limited, said in a statement that its commitments to
delivering best-in-class quality of service and seamless telephony
experience to all Nigerians was being affected by its inability to
procure diesel for its base stations.
The company stated, "While we are currently doing everything within
our means as well as going the extra mile to ensure that all our base
stations and switches are up and running, it is sad to note that it is
becoming increasingly difficult to replenish current stock of diesel
due to the lingering scarcity of the product.
"We are also concerned that, if the situation persists, it may have
adverse effects on our network, impacting both voice and data
services."
MTN Nigeria had issued a similar statement on Saturday.
One of the faction of the Nigeria Labour Congress led by Mr. Joe
Ajaero said on Sunday in Kaduna that the current fuel scarcity across
the country was a war against Nigerians.
It, therefore, warned that should the scarcity persist, organised
labour would have no choice than to embark on an indefinite strike.
It was contained in a statement by the factional Deputy President of
the NLC, Alhaji Issa Aremu, which was made available firstclass
newsline.
Firstclassnewsline.net