PETROAN President Highlights Severe Supply Constraints in Oil Sector Amid Fuel Shortages; NNPCL Denies Debt Claims
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association (PETROAN), on Monday discussed current challenges in the oil sector. He revealed that oil marketers are facing significant supply constraints, which limit their ability to distribute products effectively. Gillis-Harry emphasized that until these supply issues are resolved comprehensively, the sector will continue to struggle. He also referenced comments from the NNPC’s communications director, who attributed the ongoing problems primarily to logistical issues.
He explained that the ongoing supply issues in the oil sector are causing significant constraints for oil marketers. He noted that until these challenges are resolved, they will continue to manage the limited products available.
Gillis-Harry described the main logistical challenge as the ship-to-ship transfer process. Ships must receive products before they can deliver them to depots, and until depots are stocked, retailers cannot access the products. He assured that oil marketers are actively negotiating with the NNPCL to address these supply difficulties.
Billy Gillis-Harry, stated that discussions with NNPCL are ongoing, and while they are encouraged to do more, he confirmed that NNPCL is making efforts to address the supply issues. This follows persistent product shortages, particularly in northern regions, which have now also affected Lagos. The price of a litre of fuel has surged to between ₦800 and ₦1,000 at some filling stations, resulting in higher transportation costs.
Amid ongoing fuel shortages, some filling stations have been closed, and black market sellers have been exploiting the situation. Reports last week suggested that the scarcity might be due to debt owed by the Nigerian National Petroleum Company Limited (NNPCL) to international oil traders.
However, Olufemi Soneye, Chief Corporate Communications Officer of NNPCL, refuted these claims on Sunday. Soneye acknowledged that owing money is common in the oil trading industry, as transactions are often conducted on credit. He clarified that NNPC Ltd., through its subsidiary NNPC Trading, has multiple open trade credit lines and is managing its payments on a first-in-first-out (FIFO) basis.
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