Reps Committee Warns Of Fuel Scarcity, Price Hike In 48 Hours

The House of Representatives Committee on Petroleum Resources (Downstream) on Thursday warned that Nigeria could face a fresh wave of fuel scarcity and rising petrol prices if urgent steps are not taken within 48 hours to address crude supply challenges to domestic refineries.

Chairman of the committee, Ikenga Imo-Ugochinyere, issued the warning while briefing journalists in Abuja, describing the situation as a looming threat to economic stability and the welfare of Nigerians.

He cautioned that failure to act swiftly could trigger a resurgence of fuel queues, supply disruptions and increased hardship driven by higher pump prices.

According to him, findings from the committee’s oversight activities indicate a strong likelihood of an increase in the price of Premium Motor Spirit (PMS), driven by critical inefficiencies in the supply chain rather than deliberate government policy.

Ugochinyere identified inadequate crude supply to the Dangote Refinery as a major concern, noting that the facility, which plays a central role in stabilising domestic fuel supply, is currently operating below optimal capacity.

He disclosed that while the refinery is entitled to about 21 cargoes of crude oil and requires at least 15 to function effectively, it is receiving only five cargoes—far below the minimum threshold needed to sustain production.

“This shortfall is already undermining refining capacity and poses a direct risk to fuel availability across the country,” he said.

The committee also raised concerns over the quality of crude being supplied, describing it as substandard for a refinery of such scale and national importance.

It stressed that domestic refineries must be prioritised for high-grade crude sourced from the Niger Delta to ensure efficiency and optimal output.

Ugochinyere further highlighted the growing cost burden on local refiners, revealing that they are now paying a premium of over $18 per barrel to foreign trading intermediaries, compared to the previous $2 to $4.

“Crude oil produced in Nigeria is being sold to our refineries through middlemen based in London and Dubai, who add no value but collect huge fees,” he said.

“For every barrel priced at $100, refineries pay $118, with the additional $18 going to intermediaries.”

He described the practice as exploitative, warning that the added costs are ultimately passed on to consumers through higher fuel prices and reduced supply stability.

To avert the looming crisis, the committee called on the Presidential Technical Committee on the Crude-for-Naira initiative to reconvene within 48 hours to resolve the supply bottlenecks.

It also urged the immediate restoration of adequate crude supply to domestic refineries, strict enforcement of the Domestic Crude Oil Supply Obligation under the Petroleum Industry Act (PIA) 2021, and an urgent review of crude quality standards.

The chairman further appealed to President Bola Ahmed Tinubu to issue a stronger executive directive to ensure compliance and safeguard Nigeria’s domestic energy supply chain.

While urging Nigerians to remain calm and avoid panic buying, Ugochinyere stressed that failure to act could lead to widespread fuel scarcity, a return of queues at filling stations, and increased transport and living costs.

He added that it is unacceptable for Nigeria, one of Africa’s largest oil producers, to struggle to supply its own refineries with crude oil produced within its territory.

Fuel supply concerns have also been worsened by rising global crude oil prices linked to the recent US–Iran conflict, with petrol prices in Nigeria climbing sharply in recent weeks.

Despite being a major crude oil producer, Nigeria remains heavily reliant on imported refined products, leaving domestic fuel prices vulnerable to global disruptions, exchange rate fluctuations and rising logistics cos