Nigeria: Fuel scarcity persists; NNPC fingers equipment failure

www.vanguardngr.com By Hector Igbikiowubo Tuesday, February 25, 2003

LAGOS — DESPITE the calling off of the five-day strike by oil industry worker last week, motorists around the country were yesterday still suffering to buy fuel from under-supplied petrol stations yesterday. Last week , members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) embarked on a strike action and were later joined by their junior counterparts, the National Union of Petroleum and Natural Gas Workers (NUPENG).

The Group General Manager in charge of Public Affairs at the Nigerian National Petroleum Corporation (NNPC, Ndu Ughamadu said fuel shortages which had been widely blamed on last week’s industrial action had in fact been caused by equipment failure.

"The two refineries in Port Harcourt broke down last week and there was a shortfall in supply. But the refineries have resumed production since Friday and everything will be all right in a couple of days," he said. He explained that "the strike did not cause the fuel scarcity, although people engaged in panic-buying because of the strike which worsened the situation."

And reacting to reports of an impending hike in fuel prices, a statement released by the Chairman of the Petroleum Products Pricing and Regulatory Committee (PPPRC), Rasheed Gbadamosi, explained that there was no plan to increase fuel prices.

"Of greater significance to the PPPRC is that the committee is not contemplating any upward adjustment of price ceilings of products," he said.

He admitted that the under-supply of products to service stations was caused by unanticipated hitches in the supply chain. He said the PPPRC had been advised by the NNPC that the situation is under control and that normalcy would soon return, adding that the general public should eschew panic buying. In Lagos, motorists formed long queues at the few filling stations which had fuel, while hundreds of workers were stranded at bus stops because of the scarcity of public transport.

"I had to trek about five kilometres this morning before I could catch a bus to my office," Lagos resident, Tayo Adisa said.

Last week, government inspectors in the Department of Petroleum Resources (DPR) went on strike to demand that overdue allowances be paid and their department be given more autonomy.

The strike was called off on Friday after the government agreed to discuss the unions’ demands, but not before it had caused jitters on the world oil market at a time when looming war in the Middle East and a strike in Venezuela have sent prices soaring.