The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has explained the ongoing fuel scarcity in major cities throughout the country.
PENGASSAN President Festus Osifo, speaking on Thursday, August 22, at the 2024 PENGASSAN Energy and Labour Summit (PEALS 2024) in Abuja, identified weak and outdated distribution chains as the main reason for the long queues at filling stations.
He stated, “The distribution chain in the downstream sector of the oil and gas industry is weak.”
Osifo warned that while solutions to this issue are possible, there is a significant risk that the problem will reoccur. He elaborated, “That’s why you see queues at most stations. The problem may be resolved today, but it will likely resurface tomorrow.”
He emphasized that Nigeria’s distribution chain is outdated and inadequate to meet the demands of its large population.
Additionally, he pointed out that the oil and gas sector faces various challenges, including the high cost of local production, which he noted is 15 to 20 percent higher than in other parts of the world.
Osifo urged the Nigerian government to assume security responsibilities from investors, explaining that the high production costs can be attributed to the security burdens faced by oil and gas companies.
