Fuel queues build up as PPMC, banks cut credit to marketers

A mounting build up of petrol queues across the country has been traced to the insistence of the Pipeline Products and Marketing Company (PPMC) that oil firms pay up outstanding debts as a condition for further lifting of fuel.

Making matters worse is the refusal of banks to grant credit lines to most importers of the product for the same reason of indebtedness.

The PPMC ,a subsidiary of the Nigerian National Petroleum Corporation (NNPC) is said to have shut its pumps to some of the oil firms because they have huge pending debts.

One of the companies was alleged to be owing the PPMC N10 billion, of which N6 billion has recently been resolved.

Furthermore, informed sources say even though some payment has been made, the PPMC does not have sufficient stock to guaranty sustained supply of petrol for more than 25 days at 40 million litres national consumption per day.

The companies involved in the debt saga are said to be collectively responsible for 25 percent of the entire downstream market.

When Ohi Alegbe, NNPC group general manager, corporate affairs, was contacted, he confirmed the debt owed and the sum paid back.

The banks are holding back on granting the requested loans despite assurances by government, because they are skeptical of the ability of the applicants to pay back.

Of the 29 members of the Depot and Petroleum Products Marketers Association (DAPPMA) that applied for credit facilities from the banks, only about five were granted.

The management of the NNPC however says it has stepped up efforts to maintain stability in the supply and distribution of petroleum products nationwide.

The corporation said in a statement that it has sufficient stock of petrol to service the country for 25 days at a national consumption rate of 40 million litres per day, even as it has stepped up product distribution to petroleum marketers and NNPC Retail outlets across the country.

The NNPC called on the public to refrain from panic buying, saying it has sufficient stock at its coastal depots in Port Harcourt, Warri, and Calabar, besides the stock it holds in the national strategic reserve.

Despite the assurances, a lot filling stations across Lagos and environs have no fuel, and where have, they are selling at at between N110 and N120 per litre, against the recommended price of N87.

The filling stations are mostly those of independent marketers.

OLUSOLA BELLO