The president of the Petroleum and Natural Gas Senior Association of Nigeria (PENGASSAN), Festus Osifo, has given reasons for the continuous queues in petrol stations nationwide....READ THE FULL ARTICLE HERE ▶▶
The PENGASSAN president, who spoke at the association’s Energy and Labour Summit in Abuja on Thursday, August 22, 2024, blamed weak and outdated distribution channels for the queues.
Nigeria’s population too big to meet supply
He disclosed that the channels are weak in the downstream sector of the oil and gas industry, stating that is why most of the stations do not have petrol.
He said the distribution channels are too weak to support the growing population’s demand.
Osifo stressed that no country in the world with the size of Nigeria’s population relies on a single point of product import and uses trucks for distribution nationwide.
The PENGASSAN boss disclosed that demands outweigh supply, which cannot be met due to outdated and insufficient channels.
The News Agency of Nigeria (NAN) said Osifo blamed insufficient petrol supply at filling stations on bad road networks and flooding, which led to scarcity.
He called for quick reforms to address the challenge, asking the government to develop and boost the country’s value chain to ensure a more efficient and reliable distribution system.
He said Nigeria would continue to face recurring fuel shortages without the improvements.
PENGASSAN blames production costs
Osifo noted other challenges, including the high cost of local production, which he said is about 15% to 20% higher than in different parts of the world.
He said the high cost is partly due to the burden of security in the oil and gas companies.
The PENGASSAN helmsman asked the government to assume investors’ security responsibilities to reduce the high production costs.
He also asked the government to strengthen laws and sanctions against those involved in oil theft, advocating for harsher penalties to deter bad actors from taking over the nation’s oil assets.
Oil marketers speak on refineries
Legit.ng previously reported that the Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed optimism that the Dangote Refinery will begin selling petrol in Nigeria this August, as committed by Aliko Dangote, the Chairman of the Dangote Group.
The association also anticipates that the assurance given by the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, regarding the Port Harcourt refinery becoming operational this month, will be honoured.
The Chairman of IPMAN, NNPC Depot, Ore Western Zone, Shina Amoo, expressed this recently.
