PENGASSAN explains the persistence of fuel queues

At the 2024 PENGASSAN Energy and Labour Summit, Mr Festus Osifo, President of PENGASSAN, highlighted the root causes of the persistent fuel queues in Nigeria. He pointed out the weak and outdated distribution chains in the downstream sector of the oil and gas industry as a major factor contributing to the problem.

Osifo emphasized the need for urgent reforms to address the challenges faced by the industry, including insufficient supply of fuel, bad roads, and flooding affecting distribution across the country. He called for the development of a more efficient and reliable distribution system to prevent recurring fuel shortages.

Furthermore, Osifo raised concerns about the high production costs in Nigeria compared to other parts of the world, citing security burdens on oil and gas companies as a key factor. He urged the government to take over security responsibilities to reduce production costs and strengthen laws against oil theft.