The Major Oil Marketers Association of Nigeria (MOMAN) has stated that its members are close to the completion of blending the off-spec petrol imported into the country.
Recall that the regulator had said they were at the forefront of the situation — recalling the off-spec petrol at three stages — so as not to make its way to the end-users.
This was disclosed on Thursday by Clement Isong, MOMAN executive secretary in Lagos.
On February 8, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had confirmed that the product contained methanol above the specified volume.
The withdrawal of imported petrol from the market created a supply gap and triggered scarcity across the country.
The government also had set up a technical committee of stakeholders in the downstream petroleum sector to blend the off-spec petrol to comply with the acceptable standard.
“We are almost done with the blending of the off-spec petrol. For the majority of MOMAN members, we have almost finished the blending. We have successfully blended out the methanol, and it is now on-spec,” Isong said.
“There are other factors that come into play. So, to solve the problem, you need to supply about 150 per cent of your usual supply to the country for the queues to disappear.
“The Nigerian National Petroleum Company Limited has ramped-up supply, and that is why the queues are disappearing.”
On the increase in diesel and Jet A1 fuel, Isong said the ongoing hostilities between Russia and Ukraine and access to forex by marketers were responsible.
He said that the attack on Ukraine by Russia had led to an increase in the prices of crude oil and all its derivatives, including diesel and aviation fuel.
“That war that is ongoing has caused crude oil prices to go up worldwide. It has got as high as $130 per barrel. The problem simply is, even if you have the money, it is not so easy to find,” he said.
“Marketers are finding it difficult to source products and import them to the country.
“Then, there is the issue of accessing forex, which has been a bit challenging for marketers.
“So, when you add these two things together, you will understand why we are having this problem.”