PPMC blames fuel scarcity on non-payment of subsidy claims

Petrol-tankers08 April 2014, Abuja – THE Management of Pipelines and Products Marketing Company, PPMC, has blamed the lingering scarcity of premium motor spirit, PMS, otherwise called petrol across the country on lack of payment of subsidy claims to oil marketers.

Managing Director of PPMC, Prince Haruna Momoh who made this disclosure in his submission before the Senate Committee on Petroleum Downstream in Abuja, said marketers have suspended importation of petroleum products to the country.

Recall that the Independent Petroleum Marketers Association of Nigeria, IPMAN said recently that the Federal Government owed its members about N110 billion in subsidy claims. IPMAN President, Alhaji Aminu Abdulkadir, who confirmed payment of N41billionn recently to members, noted that the payment was from an outstanding debt of N151billion to the marketers.

But while responding to a question on the cause of the recent tightness in fuel supply, Momoh affirmed that based on the information from the Major Marketers Association of Nigeria, MOMAN, and IPMAN, lack of subsidy payment was the reason they suspended importation of petroleum products to the country.

He added that with the payment of subsidy claims for the third and fourth quarters of 2013 to marketers of about N41billion recently, the marketers have stepped up supply to the market.

Momoh however assured that the Nigerian National Petroleum Corporation, NNPC, and its downstream subsidiary, PPMC, are working assiduously to ensure that normalcy is being restored to the supply and distribution of premium motor spirit otherwise called petrol across the country.

He noted that with respect to the current fuel situation in the country, the NNPC/PPMC and other marketers are jointly supplying fuel to the market, stressing that the long queues are beginning to disappear from most of the filling stations across the states.
*Chris Ochayi – Vanguard

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