Excessive Petrol Orders Cause Glut in Nigeria
NNPC Halts Petrol Imports as Excessive Orders Cause Glut
The Pipelines and Product Marketing Company (PPMC) has suspended fuel importation, as excessive orders in the wake of the fuel subsidy scandal last year has created a petrol glut, Reuters news agency reported Thursday.
PPMC, a subsidiary of the Nigerian National Petroleum Corporation (NNPC) responsible for the supply of petroleum products to the domestic market, according to Reuters, will not make purchases in November, as it tries to work through a 10.2 million barrel (1.2 million tonnes) surplus petrol waiting offshore.
Traders reportedly hinted it was possible that the suspension may extend until the end of the year, which will hit European refiners that supply the market.
“All previously agreed laycans (deliveries) have been cancelled,” one regional trading source said, “Nigeria has about 1.2 million tonnes offshore waiting to discharge,” the report added.
Spokesman of PPMC, Nasir Imodagbe, was quoted as stating he was not aware of any cancellation of orders, but that a decision to suspend imports would be that of the regulator, the Petroleum Product Pricing Regulatory Agency (PPPRA).
“Whatever volume the PPPRA allocates to us, we ensure to deliver it. If there’s going to be any suspension, it should come from the PPPRA,” Imodagbe said.
PPPRA spokesman also denied there had been any suspension, but added: “We are a regulatory body, we don’t import ourselves.”