P-PESPI Says Russian-Ukraine Conflict Has Complicated The Dirty Fuel Logistics And Supply-Chain Crisis Averted By Mele Kyari’s Led NNPC Ltd

The P-PESPI has called on Nigerians to exercise more patience, as the current Russian-Ukraine Crisis may complicate the smooth flow of cargo vessels and tankers around the Black and Mediterranean Seas due to security and safety concerns.

In a press release on Monday by P-PESPI Chairman, Charles Ibiang, he said that this will further affect and increase freight and insurance rates, compounding NNPC revenue issues.

This is not a period for blame games, but a time for objective analysis of this unforeseen situation, because some of the oil cargoes are sourced from Eastern Europe, where the Russian-Ukraine Crisis has seriously impacted.

The regime of new sanctions by the USA and its allies targeting Russia can also affect Russian businesses associated with oil tankers and cargoes.

The recent NNPC actions to eliminate supply-chain snarls occasioned by adulterated fuel, which have staved off a national energy crisis in the Nigerian economy, homes, and private-sector companies, have seriously been slowed down by the renewed Russian-Ukraine Crisis, says P-PESPI.

Ibiang still commended the NNPC Ltd for maintaining a multi-stakeholder approach to address the high prices and shortages of petrol and crucial components, thanks to the quick response to the withdrawal of the adulterated fuel from circulation and dealing with the petroleum sector’s related labor and demand issues of tanker drivers, PTD, NARTO and freight rates.

The statement read, “NNPC Ltd was able to achieve this feat by pushing for round-the-clock port operations, new transport rules and enlisting the help of big retailers, including the strategic deployment of Nigeria Security Agencies.

“These efforts have yielded good results, which led to significant progress in the distribution of the clean PMS to filling stations.

“In Abuja, citizens have observed that even filling stations that didn’t use to have fuel in the past have been supplied with fuel just to help ease the situation.
Even though Nigerians are still experiencing long queues at the retail points of filling stations, P-PESPI attributed this to the greedy profiteering of unpatriotic marketers and individuals taking advantage of the adulterated fuel debacle. And currently, the Russian-Ukraine conflict.

“While we still hold the opinion that investigations, as directed by President Buhari, should be carried out, and anybody, no matter how highly placed, found culpable should be prosecuted.

“We wish to use this opportunity to commend the NNPC Ltd under the leadership of Mele Kyari and the Ministry of Petroleum Resources for a job well done in averting a much-predicted national energy disaster that didn’t occur.

“We are witnessing PMS deliveries happening at a faster rate than before the crisis of off-spec fuel.

“A record number of petroleum products are moving through our southern Lagos ports faster than ever, with shipping cargoes’ wait time cut in half. This is a logistics and supply chain miracle. P-PESPI is worried that the current Russian-Ukraine conflict may complicate these noble achievements.

“P-PESPI acknowledged that supply-chain issues are “not all solved” but is satisfied that “most of the petroleum products have been delivered to the final consumers.” While we believe that a national inquiry should be conducted into the importation of adulterated fuel to arrest the culprits and forestall future occurrences, the current investigations in the middle of this crisis by both the security agencies and the National Assembly are premature and a distraction to NNPC Ltd in solving the problems at hand.

“Let’s address the issues first, according to P-PESPI. And going by the new PIA, the NNPC Ltd Board should be saddled with the responsibility of initiating and designing the structure of the probe based on experts’ and professional industry know-how into the adulterated fuel debacle.

“We should learn to trust our institutions created by legislation and support them in doing their job professionally.
NNPC Ltd is now a private business entity with limited government involvement. Investors are normally wary of unnecessary political interference.

Recall that the companies are direct representatives of NNPC Ltd. by extension, because of their position as the sole importers of PMS in Nigeria. These companies are under a business contractual agreement with NNPC Ltd. through the DSDP business model, and they do so on behalf of NNPC Ltd.

“Therefore, by the new PIA, the board is hereby constituted to set direction and has the statutory obligations by law to meet and take appropriate action first since the whole issues are business and commercial dealings initiated and perfected by internal procurement processes within NNPC Ltd, which the board approved.

There is a need for self-regulation, investigations, and appropriate sanctions by them, the statement concluded.