PENGASSAN Blames Weak Distribution Chain For Recurrent Fuel Queues

The President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Comrade Festus Osifo, has attributed the persistent fuel queues across the country to weak distribution chain within the downstream sector of the oil and gas industry.

Speaking at the 3rd edition of the PENGASSAN Energy and Labour Summit in Abuja on Thursday, Osifo called for urgent reforms to address the issue.

According to him, Nigeria’s distribution chain is outdated and insufficient to meet the demands of its large population.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

He explained that this method is vulnerable to disruptions, including bad roads and flooding, which can lead to fuel scarcity.

The PENGASSAN President emphasised the need for the government to develop and strengthen the country’s value chain to ensure a more efficient and reliable distribution system.

He warned that without these improvements, the country would continue to face recurring fuel shortages.

Osifo also addressed other critical issues facing the industry where he noted that the high cost of production in Nigeria, which is 15 to 20 percent higher than in other parts of the world, is partly due to the burden of security on oil and gas companies.

“Why will the government abdicate responsibility and allow investors to provide their own security in our waterways?” Osifo questioned.

He called on the government to take over security responsibilities from investors, which would significantly reduce production costs.

Osifo further urged the government to strengthen laws and sanctions against those involved in oil theft, while he advocated for tougher penalties to deter bad behaviour and encourage integrity within the industry.

The summit, which continues on the second day in Abuja, has brought together key industry stakeholders to discuss pressing issues and explore solutions to the challenges facing Nigeria’s oil and gas sector.