THE Nigerian National Petroleum Corporation (NNPC) described it as "panic buying" and assured that it had enough premium motor spirit (PMS) or petrol to last 40 days should importation of fuel be halted suddenly.

And its sister agency - the Petroleum Products Pricing Regulatory Agency (PPPRA) - had also denied any move to increase the price of petrol from N65 upward.

Repeated media reports in recent weeks had suggested that the Federal Government might raise the pump price of petrol to N103/N104 per litre, courtesy of a December 31 deadline for full deregulation of the downstream sector of the oil industry.

However, government's denial of its planned action literally fell flat yesterday when long queues surfaced in Lagos, following similar queues in Abuja on Friday.

Indeed, many filling stations in Lagos stopped selling or completely closed shop "till we hear from our headquarters," as a manager in one of the stations on LASU Road told a motorist at about 1.15pm.

A drive from LASU Road to Oshodi through the Oshodi-Abeokuta Expressway revealed long queues in some filling stations while several others stopped selling or closed down by rolling iron rails across the entry and exit points of the stations.

Though Total filling station, opposite the Iron Market on LASU Road, was dispensing fuel, it had a long queue that snaked onto the expressway.

A nearby station had already erected a barrier to control the number of vehicles into its premises at a time, as a sign of partial hoarding of fuel.

While anxious motorists clogged the Oando filling station on Akowonjo Road, many of the stations on Idimu, Egbeda and Oshodi-Abeokuta roads were devoid of vehicular activities. Meaning that they had stopped dispensing fuel "till further notice."

But there were long queues, stretching onto the roads, at an oil station at Magodo; the two Conoil stations at the Airport junction; and Beco station at Oshodi.

Reports from other parts of the state spoke of similar scenario of long queues in some stations and low or no activities in others.

Some states in the country have also started witnessing queues at filling stations and unofficial hike in pump price.

The fuel situation in Jos, Plateau State was "very chaotic" yesterday, as motorists were buying the product in anticipation of the unknown, following the announcement by the Federal Government on deregulation.

Although most filling stations had fuel, they were not willing to sell to customers.

To drive home the acute shortage of the product in Jos metropolis, the NNPC Mega Station was witnessing an unusual long queue.

There was fear by motorists of shortage of the product in the coming days and this resulted in panic buying of the product.

However, there was no increase in the pump price at the filling stations visited.

In Calabar, there were slight queues in major filling stations.

However, while the major marketers were still selling at N65 per litre, independent marketers were selling at N70.

In Asaba, there were also slight queues at filling stations, with most of them were selling petrol at N80 per litre.

Official statement from the NNPC, however, cautioned against panic buying of the product, as that would lead to artificial prices.

"From our own end, there is no increase. We have enough stock and our supply level is very robust. Apart from vessels on high sea, we have over 40 days stock level," said Levi Ajuonuma, head of NNPC external communications department.

Despite kicks by organised Labour, civil society groups and concerned Nigerians, government functionaries continued to insist that there was no going back on the planned deregulation of the downstream sector.

This had prompted the Nigeria Labour Congress (NLC) to stage a warning strike in Abuja last week, promising a full scale protest should government fulfil its plan.

Long queues were first noticed in almost all the filling stations in Abuja on Friday, as the residents embarked on panic buying caused by the fear that the new fuel prices might come into effect yesterday, as being speculated.

Some petrol attendants had told The Guardian that they were awaiting directives from their head offices to change the pump price to N104 per litre.

However, the PPPRA has denied any move to increase the price of petrol from N65 upward.

A statement by a spokesperson for the agency, Yusuf Mu'azu summarised as untrue reports in some media that it had been directed not to import petroleum products, as a clear indication of a new price regime.

The statement read in part: "The Petroleum Products Pricing Regulatory Agency (PPPRA) is alarmed by reports in some national dailies, that the agency has been directed by the Federal Government to stop the issuance of import licenses to petroleum products marketers.

"Ordinarily, we would have ignored such inciting and misleading reports, but for the purposes of putting the facts straight, the agency has deemed it necessary to state the issues as they truly are."

The PPPRA insisted that there was no truth in the rumour making the rounds that the government had given a directive preventing the importation of petroleum products.

"Products have been imported into the country in large volumes to meet our national requirements," it said.

"The Agency has continued to monitor the supply situation and is taking every step required to ensure that there is no disruption whatsoever in the supply system."

It said that the facts available to the agency showed that the Federal Government was yet to direct the PPPRA to act contrary to the provision of its mandate, which is to ensure availability of products nationwide and maintain a level playing field for all stakeholders.

It also maintained that there is no directive to signal the commencement of full deregulation of the nation's downstream sector.

According to Mu'azu: "The PPPRA will also like to reiterate that contrary to recent speculations in the media on the proposed deregulation of the downstream oil sector, the agency has not received directives from any quarter that the policy will commence on November 1, 2009.

"Nigerians are hereby reassured of government's determination to continue to engage all stakeholders on the subject before the take-off of the policy."