Nigerian Oil Workers Blame Fuel Scarcity on Outdated Distribution Network, Call for Reforms

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) on Thursday attributed the persistent scarcity of Premium Motor Spirit (PMS) in the country to a weak and outdated distribution network.

Festus Osifo, President of PENGASSAN, speaking at the Energy and Labour Summit in Abuja, said Nigeria’s current fuel distribution system is inadequate to meet the demands of its large population.

“Nigeria’s distribution chain is outdated and insufficient,” Osifo said. “No country as large as Nigeria, with its population size, relies on a single importation point and uses trucks for nationwide distribution.”

He called for the liberalization of fuel import channels and criticized the Nigerian National Petroleum Corporation (NNPC) for being the sole importer of refined petrol. Osifo warned that without significant reforms, the ongoing fuel shortages would persist.

Osifo also highlighted the high cost of domestic fuel production, which he attributed to insecurity in oil-rich regions, leading to increased production costs for investors.

He urged the government to impose stricter penalties on oil theft, arguing that such measures would help curb the problem and reduce the financial burden on the industry.