Fuel Scarcity: NNPC Upgrades 20 Filling Stations to Major Oil Marketers

Following the persistent supply breach by major oil marketers in Nigeria, the Nigerian National Petroleum Company Limited has upgraded 20 filling stations to major oil marketers to boost the supply chain and reduce Nigeria’s intermittent fuel scarcity.

The national petroleum corporation announced in a document made available to the press on Sunday. The document showed that the total number of major marketers operating in the downstream sector increased from seven to twenty-seven.

According to NNPC, the decision to increase distribution capacity was aimed at strengthening the fuel supply chain across the country. Prior to this upgrade, Nigeria only has the following seven major oil marketers; TotalEnergies, OVH Energy (Oando), MRS, Conoil Plc, Ardova Plc, 11 Plc, and NNPC Retail Limited.

In its document titled ‘RE: Approval to operate under the major marketers category’, NNPC upgraded 20 filling stations to major marketers’ category.

The filling stations include A.Y.M Shafa Limited, A.A. Rano Nigeria Limited, BOVAS and Company Limited, NIPCO Plc, Rainoil Limited, Matrix Energy, Northwest Petroleum & Gas Limited, Swift Oil, Nepal Oil & Gas Services Ltd, Mainland Oil & Gas Limited, and Emadeb Energy.

Others include Optima Energy Resources, Ashrami Synergy Plc, Shema Petroleum Limited, Salbas Oil & Gas Limited, Zamson Global Resources, Pinnacle Oil & Gas Limited, Hong Nigeria Limited, and Danmarna Petroleum.

Operators within the industry, however, have said this would not have much impact on supply given NNPC limitations but agreed it would enhance delivery if the product is available.

Chief Ukadike Chinedu, who is the National Public Relations Officer, the Independent Petroleum Marketers Association of Nigeria, said, “They upgraded them because some of them have tank farms and they normally give them products to these tank farms through their PDOs (private depot owners), and also, some of them have filling stations.

“However, there are others who even have some of these facilities that were not upgraded because I believe that the criteria the NNPC used in upgrading these companies are that each of them must have 50 filling stations spread across the country for equitable distribution.

“Also, I am also aware that some of those companies that were upgraded don’t have this spread. However, the most important thing is the adequate supply of petroleum products.”

Responding to a question on if the upgrade would improve the supply of petroleum products, Ukadike replied with a question, “That is also my question. Is it a panacea to scarcity, profiteering, racketeering, etc? These are the issues.

“Definitely it will not. These firms that were upgraded, most of them have enough money, so the upgrade might have an effect if they are allowed to start importing petroleum products.”