NNPC Debunks DAPPMA’s Allegation on Fuel Scarcity 

By Chineme Okafor in Abuja

The Nigerian National Petroleum Corporation (NNPC) on Wednesday described as ‘very unfortunate’ claims by the Depot and Petroleum Products Marketers Association (DAPPMA) that it (NNPC) was largely responsible for the scarcity of petrol in the country.

In a statement by its Group General Manager, Public Affairs, Mr. Ndu Ughamadu, in Abuja, the NNPC exonerated itself from DAPPMA’s accusations that it had not supplied its members petrol, and that its Direct Sale Direct Purchase (DSDP) products supply scheme had broken down, hence, the supply glitches that led to the scarcity.

DAPPMA had on Tuesday alleged that its members had fully paid the NNPC through its subsidiary, the Pipeline and Products Marketing Company (PPMC) in advance for petroleum products in excess of 500,000 metric tonnes, or about 800 million litres, but that their depots and tank farms were still empty because supplies had not got to them.

It equally blamed the unending fuel crisis on the challenges in the DSDP scheme within which it claimed some participants failed in their deliveries, rising price of petrol in the international market and the high interest rates charged by banks in Nigeria.

However, the corporation said in its reply to DAPPMA that while it made efforts to meet their product demands, they still owed it N26.7 billion as at December 21, 2017, adding that based on this, DAPPMA’s claims were unjustifiable and unfounded.

“NNPC wishes to affirm that it has supplied appreciable volume to DAPPMA, Major Marketers Association of Nigeria (MOMAN) and Independent Petroleum Marketers Association of Nigeria (IPMAN) to rid the challenges currently being experienced in the supply and distribution of petroleum products in the country.

“NNPC regrets that DAPPMA which members had taken receipts of products from Petroleum Products Marketing Company (PPMC), a subsidiary of NNPC and owe the company to the tune of N26.7 billion as at December 21, 2017, has the audacity to indict NNPC unjustifiably,” said the statement from Ughamadu.

It added that: “The statement by DAPPMA that the current hiccups in the supply of products was due to the inability of the Direct Sale Direct Purchase (DSDP) partners of NNPC to deliver on their business obligations is unfounded and self-indicting as many of DAPPMA members patronise the same DSDP international counterparts as the corporation.”

It explained that: “Despite the concession by the government giving access to DAPPMA to obtain Forex at an official rate of N305 per dollar for PMS import, their members have not been able to do so, leaving NNPC as the sole supplier of PMS to the Nigerian market.”

The corporation also said it has programmed to supply 1.2 billion litres of petrol in January 2018 to contain the scarcity, adding that this would translate to about 40 million litres of PMS supply per day.

“Ordinarily, Nigeria consumes about 700 trucks (about 27 million – 30million) litres per day. Despite the current challenges, Nigerians are reassured that there is no plan to increase PMS pump price above N145/litre and that NNPC will continue to maintain ex–depot price of N133.28/litre which guarantees the pump price not exceeding the N145 per litre capped by the government,” it added, while calling on stakeholders to support its efforts at clearing out the scarcity quickly.