Real reason why queues won't disappear soon

Few days later, long queues resurfaced (if they ever disappeared) in the Federal Capital Territory, Abuja and other parts of the country.

Despite being Africa’s largest exporter of crude, Nigeria has continued to suffer petrol scarcity leading to the waste of precious man-hour.

Fuel scarcity has become the Federal government's Christmas gift to Nigerians.

December 2017 was not an exception.

Why fuel scarcity?

Senate President Bukola Saraki had mandated the Committee on Petroleum (Downstream) to suspend recess to investigate the fuel crisisand come up with solutions to the matter.

The Kabiru Marafa-led committee issued invitations to the minister of state for petroleum, Ibe Kachikwu; NNPC boss, Baru; and other relevant stakeholders.

The Minister of Petroleum, President Muhammadu Buhari was, however, not invited by the committee.

Speaking at the Senate joint committee investigating the fuel scarcity on January 4, 2017, Baru told Nigerians that the “fuel scarcity was caused by speculations of a hike in the price of petrol by in the media.”

“Due to the speculations in the media, Nigerians resulted in panic buying while the marketers deliberately refused to import petrol, leaving NNPC with the responsibility of doing so," he added.

He also blamed the scarcity on activities of those he called “a few bad eggs in the petroleum indudtry."

“We have of recent experienced a few challenges with the supply of petroleum products,” Baru began.

“Unfortunately, our downstream counterparts have been very unpatriotic in creating the problem. I am happy that now, this problem is being dealt with and the problem of noncompliance have also been tackled.

“It was most unfortunate that our industry, due to the behavior of a few bad eggs, made last year Christmas celebration a pain to lots of those who celebrated.

“NNPC is ever determined to ensure that we do not experience this again.

“Definitely, we have seen the last of it (fuel scarcity),” Baru declared.

Queues return to Abuja

checks within Abuja reveals that the queues are back and getting longer.

At the NNPC filling station along Kubwa expressway, our correspondent noticed a long queue of vehicles patiently waiting to buy the product.

“My sister, this thing don taya person,” said Francis, a taxi driver, while sipping his sachet (pure) water.

“We have crude oil in this country but why can’t the federal government repair our refineries? I have been here since morning, this is 1pm. How much will I make today? I have a wife and two children, school has resumed. This thing is so bad,” Francis said, angrily.

FG 'still paying' subsidy

Kachikwu had told lawmakers that the landing cost of petrol was between N170 – N171 per liter. With petrol currently being sold at N145, there is a deficit of N25 – N26.

Kachikwu noted that the over N900 million is lost daily as a result of the current price regime of N145/liter.

Baru gives further explanation as to whether the government was still subsidising petroleum products.

“Do you want me to remove subsidy?, the NNPC GMD asked State House correspondents at the Villa on Friday, December 29, 2017.

He goes on further: "What I am saying is that the landing cost as should be sold in the pump without under-recovery should be N171.40, however Mr. President has directed that we should maintain all the parameters to ensure that it is sold at N145 per liter.

“And that is why we are selling at depot at N133.28.”This is even as the Senate denied receiving any request from the executive in this regard.

Another fuel price hike?

A staff of NNPC who craved anonymity told that the scarcity was due to plans to increase the price of petrol.

“The marketers want the federal government to increase the price of petrol but the government has refused because of 2019 elections. They are afraid that an increase in the price of fuel will affect their chances of winning in 2019. That is the problem.

"Also, remember that the landing cost of petroleum products is higher than the current pump price.

“On the other hand, filling stations are hoarding products while they’re waiting for an announcement of an increase in price so they can make excess gain,” the source said.

Avoid panic buying - NNPC

Meanwhile, the NNPC has urged motorists to avoid panic buying of products.

The general manager, group public affairs division of the NNPC, Ndu Ughamadu in a statement called on motorists to report stations selling above the approved pump price of N145 to the Department of Petroleum Resources for sanctions.

“This plea comes on the heels of queues noticeable in some fuel stations, especially in Abuja,” he said.

“Motorists are advised to report any marketer selling above N145 per litre of petrol or hoarding the products to the Department of Petroleum Resources (DPR) which is statutorily empowered to deal with such issues.

“DPR has offices located in all parts of the country and law enforcement agencies would mete out appropriate sanctions to operators of fuel stations who engage in hoarding or sell products above the recommended band,” Ughamadu added.

As Nigerians continue to waste precious man hours in queues, it is important to note that the permanent solution to fuel scarcity is for the federal government to fix our refineries.

Modular refineries also need to hit the ground running.

Christmas is over.

Need I say more?