During the 2024 PENGASSAN Energy and Labour Summit in Abuja, Mr. Festus Osifo, President of the Petroleum and Natural Gas Senior Association of Nigeria, highlighted several factors contributing to the persistent fuel queues at filling stations countrywide. He pointed out that the outdated and weak distribution chain in the downstream sector of the oil and gas industry was a significant cause of the problem. Osifo emphasized that Nigeria’s distribution system is inadequate to meet the needs of its large population, leading to fuel scarcity.
Osifo also mentioned that bad roads and flooding further exacerbate the insufficient fuel supply at filling stations. He stressed the urgent need for reforms to address these challenges and called on the government to enhance the country’s value chain for a more efficient and reliable distribution network.
The PENGASSAN president warned that without necessary improvements, the country would continue to face recurrent fuel shortages. He also addressed other sector challenges, such as the high local production costs compared to global standards, partly due to security expenses borne by oil and gas companies. Osifo recommended that the government assume security responsibilities to reduce production costs and advocated for stricter laws and penalties to combat oil theft and promote integrity within the industry.