Fuel Queues Persist in Nigeria – PENGASSAN Reveals Causes

Mr. Festus Osifo, President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, has highlighted the causes of the ongoing fuel station queues across the nation.

During the 2024 PENGASSAN Energy and Labour Summit in Abuja on Thursday, Osifo pointed to inefficient and outdated distribution networks as a key factor behind the persistent queues.

“The distribution chain is weak in the downstream sector of the oil and gas industry.

“That is why today, you see queues in most of the stations. The problem may be solved today, but it will resurface tomorrow.

“Nigeria’s distribution chain is outdated and insufficient to meet the demands of its large population.

“There is no country in the world as big as Nigeria, with our population, that relies on a single point of product importation and uses trucks to distribute across the nation,” he said.

Osifo also linked the inadequate fuel supply at filling stations across the country to poor road conditions and flooding, which have resulted in shortages.

The PENGASSAN President urged immediate reforms to tackle the issue.

He also urged the government to enhance and reinforce the country’s value chain to achieve a more efficient and dependable distribution network.

Osifo pointed out that without these improvements, the nation would continue to experience persistent fuel shortages.

He mentioned that other challenges in the sector include the high cost of local production, which, according to him, is 15 to 20 percent higher than in other regions of the world.

He attributed the elevated production costs partly to the security burdens placed on oil and gas companies.

He encouraged the government to assume security responsibilities from investors to substantially lower production costs.

He further called on the government to strengthen laws and penalties against those involved in oil theft.

Osifo called for stricter punishments to discourage misconduct and promote integrity within the industry.

NAN