Despite numerous assurances by the Federal Government that there is enough fuel to last Nigerians through Christmas, there are fuel queues everywhere, evidence of fuel scarcity. Oil and Gas professional, Dolapo Oni explains why this is so.
See below:
So just in case you dont understand why we have fuel scarcity. Here's a quick thread to explain why.
— Dolapo Oni (@Dolarpo) December 6, 2017
We've got more than enough fuel to cover 60 days of national daily consumption but the bulk of that fuel is on vessels around Lagos Anchorage and Benin. We have a lower supply in the tanks onshore.
— Dolapo Oni (@Dolarpo) December 6, 2017
The tanks onshore are controlled by DAPPMA (Depot & Petroleum Products Marketers Association) who are still owed some significant volumes by the FG. Few of them still have some supply but need NNPC to bring in more volumes so they can sell.
— Dolapo Oni (@Dolarpo) December 6, 2017
So if you're on the retail end, with less than a week's supply in your tanks, would you like to run out of the stock you bought at N130-ish and selling for N145, knowing you''ll have to pay N138/N140 and still have to sell at N145? Wouldn't the prudent step be to delay sales?
— Dolapo Oni (@Dolarpo) December 6, 2017
Then remember at the beginning when i said we have most of the supply offshore Lagos….yeah….i was being a bit categorical there….its offshore Lagos but offshore Lagos defined as far as Rotterdam, US Gulf Coast or anyone who will sell spot cargoes today…..lol
— Dolapo Oni (@Dolarpo) December 6, 2017
So not all of it is in yet…but we have sufficient around to ease the situation within a few weeks. Congestion at the mouth of the ports has also been a factor, as well as the fact that NNPC is the only one importing PMS. Its a myriad of issues. But here's the way out…
— Dolapo Oni (@Dolarpo) December 6, 2017
We dropped the ball a bit and the bulk of the blame is on NNPC sadly. The last DSDP went a bit hazy and allocation terms must have not been suitable as most operators are yet to bring in their cargoes as they should have cos prices were not favourable.
— Dolapo Oni (@Dolarpo) December 6, 2017
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