•Say too early to determine exact amount

•NNPC has breached supply contract – IPMAN

•Seeks compensation for damages

By Obas Esiedesa, Abuja

Petroleum product marketers have disclosed that while efforts are on to restore normalcy to the supply chain across the country, cost of the operation would be borne by the government.

The entry of adulterated petrol into the supply chain four weeks ago, has led to scarcity across the country, with marketers and the Nigerian National Petroleum Corporation (NNPC) Limited mounting a major operation to recall the bad fuel and replace them with new products.

Speaking to Vanguard Public Finance, the Executive Secretary of the Major Oil Marketers Association of Nigeria (MOMAN), Mr. Clement Isong, explained that the priority was to restore normal supply and clear the queues from petrol stations across the country.

READ ALSO: Car engines damaged as FG, marketers recall bad petrol

He, however, noted it was still early in the operation to determine how it would eventually cost the government.

He said: “The important thing now is to stop the queues and it is only after that we can go back and check how much cost we have incurred in the crises, and then submit our bills to the government”.

Isong who admitted that there would be serious financial implication for the clearance operations, stated that “once we have been able to eliminate the queues then we can put our cost together and send it to the government. We are not there yet”.

He disclosed that while supply has improved greatly, it would take another week to restore normalcy “if we continue getting good supply”.

Also speaking to Vanguard Public  Finance from Port Harcourt, the Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Chinedu Ukadike, said the group has approached the government for compensation for the losses suffered by its members.

Chief Ukadike explained that besides the damage to customers’ vehicles which petrol station owners had to fix, their brands have also been badly damaged.

He said IPMAN National President, Ahmed Debo, was in discussion with the NNPC on possible compensation for independent marketers.

“We have incurred a lot of expenses in terms of repairing customers’ vehicles and also trying to regain our brands because the incident affected our brands with most customers feeling that it was the independent marketers that caused the problem.

“The ripple effect of it is very heavy on us but our National President, Alhaji Ahmed Debo, is also discussing with the top management of PPMC and, maybe by Tuesday (tomorrow), we will be able to get tangible information in terms of reimbursing us of all the expenses we have made so far”.

He noted that most marketers were struggling to cope with the crisis, saying “when we signed bulk purchase agreement there was a quantity of petroleum product that the NNPC agreed to supply to us monthly in terms of allocation but now that agreement has been breached by the NNPC and we are now resorting to hustling for fuel wherever we can get it.

“That is because if you don’t do that, it becomes impossible for you to pay staff and pay several taxes imposed by various government agencies. The impact is serious on us and that is why you are seeing most filling stations shutting down”.

Ukadike also expressed optimism that the supply difficulties would ease in the coming week, stressing, however, that “the queues are still there and we are having challenges getting supplies.

“But I heard that a vessel is coming in (into Port Harcourt) by next week. The supply from the vessel will relieve the remaining congestions we have.

“The biggest challenge is the high price we are getting the product because it is only at the NNPC depots that you can get supply at government approved rate.

“So with this vessel coming next week it will help to alleviate the sufferings of the masses”, he added.     

Vanguard News