The President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, Festus Osifo, has linked the ongoing fuel shortages at filling stations nationwide to the outdated and inefficient distribution systems within the oil and gas industry.
Speaking to the News Agency of Nigeria, Osifo emphasized the weaknesses in the country’s downstream sector, noting that the current distribution network is insufficient to adequately serve Nigeria’s sizable population.
“The distribution chain in the downstream sector is weak. This is why we continue to see queues at filling stations. Even if the issue is resolved today, it will reappear tomorrow,” Osifo remarked. “Nigeria’s distribution system is outdated and insufficient for a country of our size and population.”
He also criticized the dependence on a single hub for fuel importation, noting that the nationwide distribution of fuel relies mainly on trucking.
“It’s alarming that a country as vast as Nigeria still depends on such an antiquated system for fuel distribution,” he remarked.
Osifo further attributed the shortage of fuel at filling stations to inadequate infrastructure, such as deteriorating roads and frequent flooding, which have severely hampered the distribution process.
He urged for immediate reforms to modernize and enhance the nation’s distribution network, ensuring a more efficient and reliable supply chain.
“The government needs to develop and enhance our value chain if we are to avoid recurring fuel shortages,” he stressed.
In addition to the distribution issues, Osifo noted that local production costs in the oil and gas sector are 15 to 20 percent higher than in other parts of the world.
He attributed this to the security challenges faced by oil and gas companies, which increase operational expenses.
Osifo urged the government to assume responsibility for security in the sector to alleviate this burden on investors, which would help reduce production costs.
He also called for stricter enforcement of laws and penalties against those involved in oil theft to curb the ongoing crisis.
(allnews.ng)
Leave a Reply