Fuel Lines Have Formed in Lagos and Other Cities as Pipelines Have Been Vandalized by Criminals

Long lines for Premium Motor Spirit, commonly known as gasoline, are beginning to reappear at gas stations in Lagos, Ogun, and a few other South-Western states. Although news papers gathered that queues were not observed in Abuja and other Northern states, it was learned that petrol depots in Lagos were running out of fuel.

At many stations, especially those on the Oshodi-Ojodu Berger Expressway and certain sections of the Lagos-Ibadan Expressway, lines of vehicles waiting to purchase gasoline extended onto the expressway, thereby impeding traffic on the service lane.

The North-West gas station had the longest line because it sold gasoline for N568 per litre. Others, including Eterna at N568 per liter, NNPCL at N568 per liter, TotalEnergies at N570 per liter, and Mobil at N570 per liter, had shortened lines.

Conoil, Enyo, and Oando at Berger in Lagos dispensed no product. While some TotalEnergies terminals were observed dispensing, the Berger axis branch of the station was locked. A few others, including Worldoil, Fatgbems, and Quest in the state of Ogun, ceased operations.

Akin Akinrinade, chairman of the Satellite Depot of the Independent Petroleum Marketers Association of Nigeria, told the news papers that the depot had not loaded any products in the past three weeks. According to him, even the NNPCL Retail distribution center is presently operating with a skeleton staff.

“From our perspective, the problem has been the pipeline sabotage we’ve reported since July. Satellite depot has not loaded any product in the past three weeks, and whenever there is an issue here, Lagos and the entire South-West will be affected.

“Based on what we learned yesterday, even NNPC Retail has been operating with skeletal product dispatching, although I am unaware of the situation at other facilities. On Monday, the NNPC Retail only loaded three to four vehicles for Ikoyi. No products were shipped to other locations. “I am unaware of other depots,” he stated.

The NNPCL Retail has 21 locations nationwide, with nine in the North and twelve in the South. The news papers reported in December that the company abandoned its depots due to pipeline vandalism and now relies on private depots for product distribution.

NNPCL had recently undertaken efforts to organize the pipelines. The Satellite depots in Lagos, which resumed operations last year but were vandalized again in July, were one of these initiatives.

Managers of the Ejigbo Satellite Depot had sounded the alarm over persistent pipeline vandalism on the System 2B pipeline in front of the Good Luck Estate in Idimu, Alimosho Local Council Development Area of Lagos. Akinrinade issued a statement at the time that read, “IPMAN Satellite Depot regrets to report the vandalism of the Nigerian National Petroleum Company Limited conduit at Idimu in Alimosho LCDA of Lagos State, in front of Good Luck Estate.

This persistent vandalism is a setback for IPMAN and NNPCL’s efforts to guarantee a continuous supply of gasoline to Lagos and the entire South-West region of Nigeria. The news papers also learned that some depot proprietors were unable to import products due to the rising value of the foreign currency.

According to sources close to the situation who spoke to the news papers, a large number of gas stations had ceased operations due to a lack of customers who could afford to purchase products at the depots.

“Currently, stations are reducing expenses because the majority lack sufficient funds to purchase products for distribution to their outlets. One of the sources told the news papers that this is why those with multiple stations were forced to shut down some of them.

Another source who wished to remain anonymous told the news reporters, “The current economic climate has made it impossible for marketers to import products. Emadeb had collaborated with other marketers to bring in approximately 27 million litres.

“However, who else have you heard has brought in the product since then? We have returned to the time when NNPCL was the sole importer and would continue to dictate the market price.”

One of our correspondents was informed by a senior member of the Major Oil Marketers Association of Nigeria that demand now exceeds supply.

“NNPCL has decreased imports. And the idea was for private individuals to supplement NNPCL’s contributions. However, marketers do not import. Therefore, NNPCL remains the sole importer,” he said.

When asked to comment on the development, Garba-Deen Muhammad, a spokesperson for NNPCL, said he was speaking with a representative of an energy company who was aware of the situation.

The oil company had not responded as of the time this report was filed, despite the fact that he had promised to do so and that our correspondent had repeatedly contacted him. In the meantime, Muhammad stated in June that the company would reduce its fuel imports in August, when the Dangote Refinery would begin to produce refined petroleum products in late July or early August. NNPCL owns twenty percent of the Dangote Refinery.

Muhammad had stated, “NNPC Limited imports non-Nigerian products out of necessity, not choice.” We would have preferred to produce here, refine here, sell here, and provide the nation with the energy security it requires.

“Due to the circumstances surrounding our refineries, we cannot permit the nation to be suspended. Therefore, we have to acquire and sell wherever we can. Consequently, if Dangote products are available, why should we not purchase them?

“There is no justification whatsoever. We are interested in the Dangote Refinery for this purpose. Since we are co-owners, shouldn’t we conduct business with our associates instead of with others?”

Farouk Ahmed, the chief executive of the Nigeria Midstream and Downstream Petroleum Regulatory Authority, stated that NNPCL had reduced its imports while speaking to journalists following a meeting with oil marketers in Abuja, also in June.

Ahmed had stated, “The market is already accessible; we must adhere to the regulations. We have therefore implemented policies that are user-friendly. Several of them (marketers) have already begun implementing their applications. This is due to our desire to avoid creating a divide. NNPCL is decreasing their importation.”

Since the termination of fuel subsidies, the average price of a litre of gasoline has increased from between N180 and N200 to between N614 and N700. Due to the rising exchange rate and increase in the cost of petroleum on the international market, it was rumored that the price could rise to as high as N720 per litre; however, the NNPCL debunked this rumor.

Mike Osatuyi, National Controller of Operations for IPMAN, confirmed that oil marketers were not importing due to the price. However, he stated that there was no cause for concern.

“As a result of the price, marketers do not import. However, marketers can still retrieve it from the NNPCL. We know that NNPCL would take action. “Therefore, there is no cause for alarm,” he stated.

Further investigations by the news reporters revealed that on Tuesday, many prominent gas stations in the Lagos metropolitan area were out of fuel. Between Berger and Iyanoworo on the Lagos-Ibadan Expressway, it was observed that major stations such as Conoil (two stations), Total (two stations), African Petroleum, Oando, and Enyo did not dispense fuel to consumers.

At the Mobil Filling station located adjacent to the Lagos State Secretariat (in-bound Alausa), there was a substantial line of motorists waiting to purchase gasoline, while other customers queued up with jerry cans and jostled to get to the front of the line. Motorists expressed apprehension that Tuesday’s turn of events could be a precursor to a rise in the price of gasoline at the pump.

Babatunde Onifade, a taxi driver who travels between Berger-Victoria Island, told one of our correspondents that the abrupt closure of numerous gas stations along the axis sparked panic among commercial transport operators who had difficulty purchasing fuel on Tuesday.

On Tuesday, some fueling stations along the Idimi-Egbeda axis were also visited, and it was discovered that a NNPCL outlet along the axis was not selling. Additionally, a line was observed at an Oando gas station along the axis.

A driver named Harry Ugochukwu stated, “NNPC is not selling here, and they sold on Sunday. Only the Oando outlet here sells at the standard price, and as you can see, there is a line.” At Dopemu, inward Agege, an NIPCO outlet was observed selling with little or no line.

Commenting on the situation in the South-West, Billy Gillis-Harry, president of the Petroleum Products Retail Outlets Owners Association of Nigeria, said that although the lines had not yet reached the South-South, North, and other regions, the decline in imports could justify a spread in lines. People are unable to import because there is insufficient foreign currency, which is detrimental to a liberalized market. Therefore, we have continued to advocate for the prompt rehabilitation of refineries to prevent the spread of these lines to other regions of the country,” he explained.