The current scarcity of Premium Motor Spirit (PMS), commonly known as petrol, in certain parts of Lagos and the South-Western states could persist until the end of September, and there is a risk that it might extend to other regions if not addressed promptly.
This predicament arises from the ongoing repair work on the System 2B pipeline situated in front of Good Luck Estate at Idimu, Alimosho Local Council Development Area in Lagos.
According to reports, this pipeline is expected to become operational again by the end of September.
Oil marketers have attributed the recent fuel queues witnessed in several parts of Lagos and neighboring states to the disruptive activities of vandals.
The shutdown of the System 2B pipeline, responsible for supplying substantial volumes of petroleum products to the region, has significantly hampered the flow of PMS in this area.
Akin Akinrinade, the Chairman of the Independent Petroleum Marketers Association of Nigeria (Satellite Depot), expressed concerns over the pipeline vandalism that was reported as early as July.
Satellite depots face 3 week fuel shortage
He pointed out that satellite depots had not received any product in the past three weeks, which directly impacts Lagos and the entire South-West region’s fuel supply.
In response to these issues, the Nigerian National Petroleum Company Limited (NNPCL) has been working on repairing the vandalized pipeline.
However, the Chief Corporate Communications Officer of NNPCL, Garba-Deen Muhammad, mentioned that the facility would likely be operational again towards the end of September, suggesting that supply disruptions might continue until then.
The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, noted a drop in the nationwide supply of petrol.
He cited several factors contributing to this shortage, including challenges in accessing foreign exchange, which discouraged marketers from importing PMS.
Gillis-Harry also raised questions about the effectiveness of NNPCL as the “supplier of last resort,” indicating that while importation might be occurring, the results of these imports needed to be visible in the market.
Despite assurances from NNPCL and discussions with industry stakeholders, queues at petrol stations have persisted.
Mike Osatuyi, the National Controller of Operations at IPMAN, suggested waiting for NNPCL’s statement before taking further actions.
Chinedu Okonkwo, the President of IPMAN, also emphasized that NNPCL Retail assured them of sufficient product availability.
However, concerns about low supply levels remain, with challenges like reduced vehicle fuel purchases contributing to the situation.
In contrast, areas outside of Lagos and the South-West have not experienced significant fuel shortages.
This can be attributed to various factors, including reduced vehicle usage, pooling resources among families and neighbors for shared transportation, and overall lower demand for PMS outside of Lagos.