House of Representatives Alerts on Imminent Fuel Scarcity and Price Surge as Dangote Refinery Faces Supply Challenges

The Committee on Petroleum Resources (Downstream) in the House of Representatives has issued a warning regarding the possible return of fuel shortages and long queues across Nigeria.

The committee indicated that petrol prices could also see an increase if immediate measures are not implemented to tackle the challenges concerning crude supply to local refineries.

Ikeagwuonu Ugochinyere, the committee chairman, shared this alert on Thursday during a press conference in Abuja. He labeled the existing situation as a significant threat to both the nation's economic stability and the wellbeing of its citizens.

Ugochinyere pointed out the insufficient crude oil supply to the Dangote refinery, a key player in Nigeria's objective to maintain a stable fuel supply.

The committee's investigations suggested a strong possibility of rising prices for Premium Motor Spirit (PMS), with the increase stemming not from intentional governmental actions but rather from critical inefficiencies in the supply chain.

He further explained that while the Dangote refinery is supposed to receive approximately 21 cargoes of crude oil, it currently gets only five—well below the minimum needed for optimal production.

Ugochinyere warned that if these problems are not resolved in the next 48 hours, the country could experience renewed fuel shortages, disrupted supplies, and increased hardships due to escalating pump prices.

He expressed concern that this crude oil deficit was hampering refining capabilities and directly jeopardizing fuel availability nationwide.

"The crude oil extracted in Nigeria is frequently sold to our refineries via intermediaries located in London and Dubai, who provide no added value yet charge substantial fees," Ugochinyere noted.

He added that for every barrel sold at $100, refineries end up paying $118, an additional $18 going to these middlemen.

To prevent an impending crisis, the committee urged the reconvening of the Presidential Technical Committee on the Crude-for-Naira initiative within 48 hours to address these supply issues.