Import Allocation: Delay Worries Fuel Marketers

Nigeria may be heading for
fresh rounds of fuel scarcity as oil marketers wait endlessly for the Federal Government to give approval for the importation of petroleum products for this quarter.
The marketers have become increasingly apprehensive as January rounds off without the Petroleum Products Pricing Regulatory Agency (PPRA) releasing the approval for marketers to import products.
Executive Secretary of the Major Oil Marketers Association of Nigeria (MOMAN), Mr Obafemi Olawore, told our correspondent in an interview in Lagos that the association’s members were now on edge over the inability of the PPPRA to release the importation approval.
He said that the delay by the PPPRA to release the approval might cause acute scarcity of products in the near future.
“If we don’t get approval on time, it will affect our ability to import products and this will in turn delay distribution of products nationwide.
“The management of PPPRA should release allocations immediately to avoid products scarcity in the country.
Olawore expressed worry that no marketer had been given allocation approval this quarter.
According to him, the country has limited products in stock and the relevant authorities must do something “because a stitch in time saves nine’’.
An independent marketer, who pleaded anonymity, also lamented that the nation might be on its way to experiencing acute shortage of fuel, following the inability of government to place order for first quarter importation allocation.
“Available stocks are depleting on daily basis. If drastic actions are not taken to import fuel, the nation will likely witness severe fuel shortage.
A leading marketer, who also spoke on the issue, said that acute fuel scarcity might hit the nation soon.
“We are ending one month into this quarter but nothing seems to be happening, the implication is that Nigeria may be on course to facing fresh rounds of fuel scarcity crisis.
“Supply vessels are off-shore attracting demurrage and there is no inkling on when the approval for importation of products will be given by the PPPRA.
“The downstream is currently on edge and anxiety is mounting among fuel marketers because of the non-release of the approval for first quarter importation,’’ the marketer stated.
Speaking on the development,the Managing Director, Mainland Oil and Gas Ltd.,  Mr Chris Igwe, said that the delay in releasing importation approval might not be unconnected with the penchant of the PPPRA to follow due process.
“The Executive Secretary of the PPPRA, Mr Reginald Stanley, is a man of integrity and a man who follows due process.
“What happened is that some of the lay cans given to marketers are still on till January and you know they will need to appraise the performance of each marketer before giving new allocations.
“For instance, if any marketer fails to perform for the previous quarter, it will affect your next quarter.
“It is also the same way, if your performance is good you stand the chance of getting more, so, you can see that what drives PPPRA is performance.