Reps panel warns of petrol scarcity over crude supply gaps
The House of Representatives Committee on Petroleum Resources (Downstream) has raised alarm over an imminent return of fuel scarcity and queues in Nigeria, warning that petrol prices may also rise if urgent steps are not taken to address crude supply challenges to domestic refineries. Chairman of the committee, Ikeagwuonu Ugochinyere, gave the warning on Thursday […]
House of Reps
The House of Representatives Committee on Petroleum Resources (Downstream) has raised alarm over an imminent return of fuel scarcity and queues in Nigeria, warning that petrol prices may also rise if urgent steps are not taken to address crude supply challenges to domestic refineries.
Chairman of the committee, Ikeagwuonu Ugochinyere, gave the warning on Thursday while briefing journalists at the National Assembly complex in Abuja, describing the situation as a major threat to economic stability and the welfare of Nigerians.
He cautioned that unless the issues are resolved within 48 hours, the country could witness a resurgence of fuel queues, supply disruptions, and worsening hardship driven by higher pump prices.
According to him, findings from the committee’s oversight activities point to a strong likelihood of an increase in the price of Premium Motor Spirit (PMS), driven not by deliberate government policy but by critical supply chain inefficiencies.
A key concern, he said, is the inadequate supply of crude oil to the Dangote Refinery, which remains central to Nigeria’s efforts to stabilise fuel supply.
He disclosed that while the refinery is entitled to about 21 cargoes of crude oil and requires at least 15 to operate optimally, it is currently 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 expressed concern over the quality of crude being supplied, describing it as substandard for a refinery of such scale and national importance.
The committee stressed that domestic refineries, particularly the Dangote Refinery, must be prioritised for high-grade crude sourced from the Niger Delta to ensure efficiency and optimal output.
Another major issue highlighted is the rising cost burden on local refineries due to international trading intermediaries.
The lawmaker revealed that domestic refiners are now paying a premium of over $18 per barrel to foreign trading companies, a sharp increase from the previous $2–$4.
To avert a 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.