Reasons for Lingering Fuel Queues in Nigerian Filling Stations -MOMAN

The current fuel scarcity and long queues at filling stations being witnessed across the country are as a result of exceptionally high demand for the product and distribution challenges. This is according to the Major Oil Marketers Association of Nigeria (MOMAN).

In a statement released, the association also attributed the high cost of petroleum products and lingering queues to the high logistics and exchange rate costs which have put more pressure on the pump price of fuel.

MOMAN said, “These queues are caused by exceptionally high demand and bottlenecks in the distribution chain. The major cause is the shortage and high (US dollar) costs of daughter’s vessels for ferrying products from mother vessels to depots along the coast.”
“Next is an inadequate number of trucks to meet the demand to deliver product from depots to filling stations nationwide. These high logistics and exchange rate costs continue to put pressure on prices at the pumps.”
“Over the past three months, staff and management of MOMAN companies have worked diligently at depots and filling stations to relieve the stress faced by customers through the Christmas and New year period.”

MOMAN said it shall continue to use its best endeavours to ensure that the product was sold at pump prices currently approved by the regulatory authorities, despite pressure on the price by demand and costs in their immediate operating environment.

The Major Oil Marketers Association of Nigeria was established in 2001 as a MOC, to represent the collective interests of the Nigerian petroleum industry and address the distribution/ allocation challenges amongst petroleum marketers. In August 2006, MOMAN was incorporated as an advancement to standardize the affairs of the MOC.

Recall that the Independent Petroleum Marketers Association of Nigeria (IPMAN) had earlier said that there is confusion in the downstream sector of the oil industry as they don’t understand what is really happening, following the lingering fuel scarcity that has hit major cities across the country for some months.
This was, as some media reports had suggested, that the Federal Government directed MOMAN and IPMAN to adjust the pump price of petrol up to N185 per litre, a claim the government had denied.
IPMAN had said that the volume of products lifted by oil marketers had dropped by 50% with the independent marketers saying that they do not also really understand what is going on.

Source: Nairametrics

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