Oil marketers have attributed the current scarcity of Premium Motor Spirit (PMS), commonly known as petrol, to ongoing logistics challenges. This was disclosed by Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association (PETROAN), during an interview on Channels Television’s *Morning Brief* on Monday.
Gillis-Harry explained that oil marketers are currently constrained by supply limitations and are only able to distribute the limited stock they receive. “Until we efficiently and abundantly resolve our supply challenges, this cycle of scarcity will continue,” he stated.
He further elaborated on the logistics issues, noting that they primarily involve ship-to-ship transfers. “The logistics challenge is about ship-to-ship transfer. Until the ship receives products, it cannot deliver to any depots, and without supply at the depots, we, the retailers, cannot access the products,” Gillis-Harry explained.
Despite the ongoing issues, Gillis-Harry assured that oil marketers are in active discussions with the Nigerian National Petroleum Company Limited (NNPCL) to address the supply constraints. “We have been speaking with NNPCL, encouraging them to increase supply, and I can assure you they are trying their best,” he said.
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The scarcity, which has been particularly severe in the northern regions of the country, spread to Lagos over the weekend. Reports indicate that petrol prices have surged to between ₦800-₦1,000 per litre in some filling stations, driving up transportation costs. Many filling stations have ceased sales, while black market operators have taken advantage of the situation to profit.
Last week, reports surfaced linking the scarcity 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 while it is common for transactions in the oil trading business to be conducted on credit, NNPCL is meeting its payment obligations on a first-in-first-out (FIFO) basis through its subsidiary, NNPC Trading.
