Lagos — Hope for an enduring solution to the protracted fuel crisis in the country has been rekindled as the Federal Government has released the First Quarter 2010 Import Permit for Premium Motor Spirit (PMS), otherwise called petrol.

This is coming as African Petroleum (AP) Plc, a leader in the downstream sector of the Nigerian oil and gas industry, has said it has ordered 10 cargoes of PMS.

Most major marketers and other independent importers had complained that the current fuel scarcity was caused by delays in payment of subsidies for imported cargoes, non-issuance of import approvals for the third quarter of 2009, late issuance for fourth quarter of 2009 and non-issuance for first quarter of 2010, in addition to credit squeeze.

Even after receiving over N300 billion in subsidy claims between August 2009 and January 2010, the marketers later complained that apart from the refusal of banks to open lines of credit for the importation of PMS, they were also yet to receive import approval from the Petroleum Products Pricing Regulatory Agency (PPPRA) to import for the first quarter of 2010.

But spokesman of the PPPRA, Mr. Yusuf Muazu, who confirmed the release of the approval last night, told THISDAY that the approval for importation of 3.9 million metric tonnes of PMS was granted to the Nigerian National Petroleum Corporation (NNPC) and 33 other marketers.

According to him, 1,980,000 metric tonnes were approved for the NNPC, while 33 other marketers got approval for 1,920,000 metric tonnes.

Muazu also said that eight marketers had their 2009 fourth quarter approval revalidated by PPPRA, adding that the figure was not part of the 3.9 million metric tonnes.

"The first quarter 2010 estimated optimum volume requirement in metric tonnes for 120 days is 3,131,991.05. This is the fuel sufficiency for 120 days. But we granted 3.9 million metric tonnes," he said.

Meanwhile, AP Plc has become the first major marketer to resume importation of PMS in the first quarter of 2010.

This move, according to the Chief Operating Officer of the company, Mr. Tunde Falasinnu, would not only provide the market with adequate supply, but also ensure steady distribution to all the nooks and corners of the nation.

Falasinnu said in a press statement yesterday that AP Plc is strategic in the efforts to ensure that petroleum products supplies reach all parts of the country, as the company has over 500 fuel retail outlets spread throughout the country as well as efficient transporters in its system that could ensure effective distribution of the product.

According to him, it has four regional offices which is made up of nine district offices that coordinate its activities in all parts of the country.

"AP Plc has been in the forefront of making sure petroleum products are available to Nigerians at the official price, especially at this time of acute shortage. This is made possible because of the company's robust system which keeps track of its distribution chain, training and monitoring of its licensees, dealers, transporters and even station managers and customers attendants in the outlets," he said.

Despite the current challenges in securing loan facilities from commercial banks, AP Plc was able to import all the cargoes allocated to it by PPPRA in the Fourth Quarter 2009 Import Permit for PMS.

Industry sources are of the opinion that AP's effort would facilitate the task of the recently inaugurated "NNPC War Room" which was created with a mandate to come up with a viable plan of action to end the fuel queues permanently.

Most fuel marketers had earlier stopped importation of products following delays in the payment of their subsidy claims by the Federal Government and the refusal of banks to fund importation of PMS owing to the Central Bank of Nigeria (CBN)'s sledge hammer on some of the banks.

The refusal of banks to open lines of credit for importers of fuel had worsened the current fuel crisis as the NNPC became the sole importer of fuel.

The suspension of importation by the marketers created a supply gap, which the NNPC tried to fill without success.

Before the crisis began, NNPC accounted for 47 per cent of fuel importation, while the private importers accounted for 53 per cent.

However, the Executive Secretary of PPPRA, Mr. Abiodun Ibikunle, had insisted that some of the major marketers were yet to fully activate the previous approval given to them.

Muazu also confirmed his boss' position that the marketers were yet to fully activate their import approval.

"After giving them the fourth quarter approval in November 2009, we went out of our way in December to give them approval for additional 1.5 million metric tonnes, which is equivalent to two months' fuel sufficiency. Meanwhile, we are processing the first quarter approval and it will be ready any moment from now," he told THISDAY.