PENGASSAN Explains Reasons Behind Ongoing Fuel Queues

PENGASSAN Explains Reasons Behind Ongoing Fuel Queues

Mr. Festus Osifo, President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), has outlined key reasons behind the ongoing fuel queues at filling stations across the country…… CONTINUE READING 

At the 2024 PENGASSAN Energy and Labour Summit in Abuja on Thursday, Osifo pinpointed weak and outdated distribution chains as major contributors to the fuel shortages. He explained, “The distribution network in Nigeria’s downstream oil sector is inadequate. This issue leads to persistent queues at stations, which may be temporarily resolved but will likely recur.”

Osifo criticized the reliance on a single importation point and the use of trucks for nationwide distribution, noting that no other country with a population as large as Nigeria’s operates in this manner.

He also linked fuel shortages to infrastructure problems, including poor road conditions and flooding, which exacerbate supply issues. Osifo emphasized the need for urgent reforms to modernize and strengthen the country’s distribution network.

Further, he called for the government to enhance the value chain to create a more efficient and reliable system. Osifo also addressed the high cost of local production, which he claimed is 15 to 20 percent higher than global averages, partly due to the security burden on oil and gas companies.

He urged the government to assume responsibility for security to reduce production costs and recommended stricter laws and harsher penalties for oil theft to promote industry integrity and deter malpractices.