The President of the Petroleum and Natural Gas Senior Association of Nigeria (PENGASSAN), Mr. Festus Osifo, has outlined the key reasons behind the persistent fuel queues at filling stations across the country. Speaking at the 2024 PENGASSAN Energy and Labour Summit in Abuja on Thursday, Osifo pointed to outdated and inadequate distribution chains in the oil and gas sector as a significant factor contributing to the ongoing issue.
“The distribution chain in the downstream sector is weak,” Osifo stated. “This is why we continue to see queues at many stations. The problem may be resolved temporarily, but it inevitably reappears. Nigeria’s distribution network is outdated and insufficient to meet the needs of our large population. There is no other country of Nigeria’s size that relies on a single point of product importation and depends on trucks for nationwide distribution,” he explained.
Osifo also attributed the scarcity of fuel to poor road conditions and flooding, which further hamper the supply chain. He emphasized the urgent need for reforms to improve the efficiency and reliability of Nigeria’s distribution system.
The PENGASSAN president stressed that without such improvements, the nation would continue to experience recurrent fuel shortages. He also highlighted the high cost of local production as another challenge, noting that production costs in Nigeria are 15 to 20 percent higher than in other parts of the world.
This increased cost, according to Osifo, is partly due to the burden of security placed on oil and gas companies. He urged the government to assume responsibility for security in the sector to help reduce production expenses.
Additionally, Osifo called on the government to strengthen laws and impose harsher penalties against those involved in oil theft. He believes that stricter sanctions are necessary to discourage criminal activities and promote integrity within the industry.
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