Persistent Fuel Queues a Result of Weak Distribution Chain: PENGASSAN President

Festus Osifo, President of the Petroleum and Natural Gas Senior Association of Nigeria (PENGASSAN), has identified the root cause of persistent queues in filling stations across the country as the weakness and outdatedness of the distribution chain. At the ongoing 2024 PENGASSAN Energy and Labour Summit (PEALS 2024) in Abuja on Thursday, Osifo emphasized that the situation is not unique to Nigeria, as large populations in other countries do not rely solely on a single point of product importation and truck distribution.

Osifo attributed the insufficient supply of fuel at filling stations to bad roads, flooding, and the country’s outdated and insufficient distribution chain. He encouraged the government to develop and strengthen the nation’s value chain to ensure a more efficient and reliable distribution system.

The PENGASSAN President also highlighted the high cost of local production, which is 15-20 per cent higher than in other parts of the world, as another challenge facing the oil and gas sector. He attributed the high production cost to the burden of security in the companies and urged the government to take over security responsibilities to significantly reduce production costs.

Furthermore, Osifo called for harsher penalties to deter oil theft and encourage integrity within the industry, as well as strengthened laws and sanctions against those involved in the illegal act.

The persistent fuel queues in the country have been a recurring issue, and stakeholders are urging the government to implement a comprehensive solution to address the challenge once and for all.