PENGASSAN Says Nigeria’s Fuel Distribution Chain Outdated, Reason For Scarcity

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The Petroleum and Natural Gas Senior Association of Nigeria (PENGASSAN) said the persistent scarcity of Premium Motor Spirit (fuel) is as a result of weak and outdated distribution chain employed in the country. 

The president of the Association, Festus Osifo, stated this in Abuja on Thursday at the PENGASSAN Energy and Labour Summit. According to him, Nigeria’s distribution chain is outdated and insufficient to meet the demands of its large population.

Speaking on the need to open up importing channels, and NNPC’s role as the sole importer of refined petrol, Osifo noted that there is no country in the world as big as Nigeria that relies on a single point of product importation and uses trucks to distribute across the nation.

He said, “The distribution chain is weak in the downstream sector of the oil and gas industry. That is why today, you see queues in most of the stations. The problem may be solved today, but it will resurface tomorrow.

“Nigeria’s distribution chain is outdated and insufficient to meet the demands of its large population.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 stressed on the need for the government to reform the sector, by strengthening the distribution channels to support the continuous distribution of petrol across the country.

Osifo also noted the high cost of producing petrol locally, which according to him, is due to insecurity in oil and gas-rich zones. He added that in ensuring the security of oil and gas assets, investors were incurring more costs, pushing up their total cost of production.

He therefore tasked the government to ensure a strict penalty for those involved in oil theft, stating that this will serve as a tool to curb the menace in the country.

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