Key Points:
- Petroleum Sufficiency Assurance: The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has assured President Bola Tinubu that Nigeria has a 20-day supply of petroleum.
- Supply Breakdown: This 20-day supply includes 12 days offshore and over 8 days onshore reserves.
- Future Availability and Pricing: IPMAN assured that fuel availability will improve soon but noted potential price adjustments due to increased depot prices for marketers.
In a recent meeting with President Bola Tinubu, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) assured that the nation has a guaranteed 20-day supply of petroleum.
This information was conveyed by the NMDPRA’s Chief Executive Officer, Farouk Ahmed, following discussions about the fuel scarcity affecting Abuja and other parts of Nigeria.
Causes of Fuel Scarcity
Ahmed explained to President Tinubu at the Presidential Villa that the recent fuel shortages were primarily due to logistical disruptions. These disruptions were caused by rough seas and flooding in Lagos, which hindered the transportation and distribution of petroleum products.
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Breakdown of Petroleum Supply
The 20-day petroleum sufficiency comprises 12 days of offshore supply and over eight days of onshore reserves.
“I briefed the President that we have about 20 days of petroleum sufficiency: 12 days offshore and over eight days onshore,” Ahmed stated.
Logistics Challenges
Ahmed provided further details on the logistical issues that led to the fuel scarcity. He noted that offshore ship-to-ship (STS) loading operations were suspended due to safety concerns caused by volatile sea conditions.
“The rough seas made it unsafe to continue STS operations, which are crucial for transferring petroleum from ship to ship,” he said. This suspension caused a delay of two days, creating a supply gap.
In addition to the sea-related disruptions, flooding in Lagos further complicated the situation. The floods impeded truck loading and movement, resulting in significant delays.
“The floods in Lagos disrupted truck loading and movement, causing further delays in the distribution of petroleum,” Ahmed explained.
Independent Petroleum Marketers’ Perspective
The Independent Petroleum Marketers Association of Nigeria (IPMAN) also attributed the fuel scarcity to heavy rainfall and poor road conditions.
IPMAN’s National President, Abubakar Maigandi, assured that marketers are committed to making fuel available to consumers as soon as possible. However, he noted that price adjustments might be inevitable due to increased depot prices for marketers.
The NMDPRA assured that Nigeria has a 20-day petroleum supply, and efforts are being made to address the logistical challenges that have caused recent fuel shortages.
Both the NMDPRA and IPMAN are working to ensure a steady supply of fuel to alleviate the scarcity and meet the nation’s needs.
