The House of Representatives Committee on Petroleum Resources (Downstream), on Thursday, raised the alarm over an imminent return of fuel scarcity and queues across the country, 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, Hon. Ikenga Ugochinyere, expressed concern during a media chat held 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.
It 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.
“Crude oil produced in Nigeria is being sold to our refineries through middlemen based in London and Dubai, who add no value but collect huge fees,” he said.
“For every barrel priced at $100, refineries pay $118, with the additional $18 going to intermediaries.”
He described the practice as exploitative, warning that the additional costs are ultimately transferred to consumers through higher fuel prices and reduced supply stability.
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.
The Committee also advocated for the immediate restoration of adequate crude supply to domestic refineries, strict enforcement of the Domestic Crude Oil Supply Obligation under the Petroleum Industry Act (PIA) 2021, and an urgent review of crude quality standards.
Hon. Ugochinyere therefore appealed to President Bola Ahmed Tinubu to issue a stronger executive directive to ensure compliance and safeguard Nigeria’s domestic energy supply chain.
While urging Nigerians to remain calm and avoid panic buying, he warned that failure to act swiftly could lead to widespread fuel scarcity, a return of queues at filling stations, and increased transport and living costs.
He stressed that it is unacceptable for Nigeria, one of Africa’s largest oil producers, to struggle to supply its own refineries with crude oil produced within its territory.
Hon. Ugochinyere also extended goodwill messages to Muslims marking Eid el-Fitr and Christians preparing for Easter, calling for unity in addressing the country’s economic challenges.
Fuel supply concerns have been further compounded by the recent US–Iran conflict, which has driven up global crude oil prices.
In Nigeria, petrol prices have surged from about N700–₦800 per litre before the crisis to over N1,200 in recent weeks, intensifying pressure on supply and raising fears of a nationwide shortage.
Despite being a major crude oil producer, Nigeria remains heavily reliant on imported refined fuel, leaving domestic prices highly vulnerable to global disruptions, exchange rate fluctuations, and rising logistics costs—factors that continue to drive inflation and deepen economic hardship.