Kano — Uncertainty over the actual take-off date of government's proposed deregulation of the downstream sector of the petroleum industry yesterday resulted in long queues at petrol stations within the Lagos and Abuja metropolis.

Some major and independent oil marketers told THISDAY last night that government is not sincere about the actual take-off date of its deregulation policy and that petroleum users are now buying in panic for fear that its implementation will result in product scarcity.

Also, in Abuja, motorists moving in and out of the Federal Capital Territory through the Dei-dei - Zuba end of the Kubwa - Kaduna Expressway yesterday ran into a chaotic traffic jam resulting from a long-winding queue of vehicles waiting to buy fuel from the filling stations on the roadside.

The incident which lasted more than five hours caused serious commotion as motorists anxious to find an escaped route drove their vehicles in several directions thereby blocking every available space on both sides of the dual carriage way.

Queue of vehicles trapped in the ensuing traffic jam stretched to as long as three to five kilometres on both sides of the expressway leaving commuters and other road users sweating and reeling in agony.

To compound the matter, heavy duty vehicles and some other cars that could not withstand the traffic stress developed engine problem and caused further blockade, leaving other vehicles little space to manoeuvre on the road.

Queues in petrol stations had re-surfaced in Abuja and its environs in the last week, with most residents spending the better part of yesterday looking for fuel. THISDAY also gathered that the scarcity has also stretched to neighbouring Madella and Suleija in Niger State.

The Nigerian National Petroleum Corporation had earlier announced November 1, (today) as the take-off date for the deregulation. However, protests by labour and other civil society organisations, prompted government to postpone the date indefinitely..

Speaking with THISDAY last night, spokesman of NNPC, Dr. Levi Ajuonuma stated that the panic buying was orchestrated by oil marketers who are hoarding their products in anticipation that the deregulation could take-ff at any time.

He said there was no need for users to buy in panic because the corporation has over 40 days products sufficiency and also has many ships carrying products that are currently on Nigerian waters waiting to berth.

He accused marketers of buying products from NNPC at low prices and in turn hoarding it with the aim of selling at higher prices.

He warned that the Department of Petroleum Resources (DPR) has been mandated to close down any filling station that fails to sell products. He added that most of the attendants dispense products from only one or two nozzles and by so doing, causing queues to build up.

"There is no change in our supply dynamics. NNPC has robust supply. There is no product scarcity and there is no need for this panic buying. I can tell you that we have more than 42 days sufficiency. The queues that resurfaced in Lagos and Abuja were caused by marketers in anticipation of deregulation.

"In view of the robust supply of the product, we wish to appeal to consumers not to resort to panic buying and we also wish to appeal to independent and major marketers to dispense petroleum products with all their serving nozzles. NNPC assures the public that everything is being done to ensure steady supply of petroleum products all over the country," he said.

Ajuonuma also debunked report of build up of a Petroleum Products Armada of 58 ships anchored on Nigerian territorial waters and explained that vessels are discharged according to programme.

Speaking in the same vein, spokesman of the Pipelines and Products Marketing Company, Mr. Raph Ugwu said " There are queues because of people's speculation on deregulation and buyers are now buying in panic." According to him, "there is no scarcity anywhere. The system is wet with products".

However, despite the claims of adequate supply by NNPCâ-àstaff, THISDAY yesterday exclusively reported that the corporation is owing over $2 billion or about N300 billion debt to numerous commodity traders which import petroleum products on behalf of its subsidiary, the Pipeline and Products Marketing Company (PPMC).

Shipping position data complied as at last Wednesday by Daddo Maritime Services, a Lagos-based shipping agent on petroleum imports revealed that 58 ships laden with petrol and kerosene imported for the PPMC are either on berth at numerous jetties in Lagos and Port Harcourt on anchored on the high sea.

The vessels are accumulating demurrage running into several millions of dollars, while waiting to discharge their cargoes. This development may have given a lie to the corporation's claims that it has enough supplies to last the national requirement for 40 days.

The NNPC piled up the $2 billion debt after it embarked on "reckless" importation to muscle out other major oil marketers from the importation of fuel products and to also show that it can single handedly manage the importation of products into the country.

The Federal Government had in February endorsed the full deregulation of the downstream sector following the recommendations presented to President Umaru Musa Yar'Adua by the Presidential Steering Committee on the Global Economic Crisis.

Government said it had been subsidising inefficiencies, fraud, racketeering in the whole production chain, resulting in it's spending nearly N640 billion in the last one year (as at February) and an estimated amount of N1.63 trillion on subsidies. The government also said it would re-examine the role of Petroleum Product Pricing Regulatory Agency (PPPRA), even as it admitted that there was a need for regulatory institution.

THISDAY learnt that part of reason for the in implementation of the deregulation policy was because government wanted to address the issue of price mechanism to ensure it was not transferred to a 'cartel'. After months of speculation on the actual take-off date, the NNPC last month confirmed the November 1, 2009 date.

However, controversies have continued to trail the planned deregulation with marketers and NNPC being on each other's neck.

Last week, the marketers, under the aegis of Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association (DAPPMA ) and Independent Petroleum Marketers Association of Nigeria (IPMAN) had opposed to the alleged refusal of the Petroleum Products Pricing and Regulatory Agency (PPPRA) to give private sector operators approval to import petroleum products. He said that such action was to make NNPC "to become the de facto sole importer of petroleum products into the country today."

"We have written to the Honourable Minister of Petroleum to state that this situation is not in the interest of the nation or businesses especially as NNPC controls only 40 -50percent of the reception facilities available for importation. As such the balance of the nation's import reception facilities are rendered redundant and are not utilised to ensure effective and maximum distribution of petroleum products. This has a potential for serious supply disruptions," MOMAN said.