Nigeria may be on the brink of another fuel scarcity crisis, as the House of Representatives Committee on Petroleum Resources (Downstream) has warned that petrol queues and further price hikes could emerge within weeks if urgent steps are not taken.
Speaking at a press briefing in Abuja, the committee chairman, Ikenga Ugochinyere, described the situation as a looming national concern, stressing that systemic failures in the fuel supply chain—not deliberate government policy—are driving the instability.
Akahi News gathered that the warning comes at a time when Nigerians are already grappling with rising petrol prices and worsening cost-of-living pressures.
Supply Shortfall Threatens Refining Capacity
At the heart of the crisis is the inadequate supply of crude oil to the Dangote Refinery, a facility widely seen as central to Nigeria’s quest for energy independence and stable fuel pricing.
Ugochinyere disclosed that while the refinery is allocated about 21 cargoes of crude oil and requires at least 15 to function optimally, it is currently receiving only five.
“This shortfall is already undermining refining capacity and poses a direct risk to fuel availability across the country,” he said.
Akahi News learnt that the situation has further exposed the paradox of Nigeria’s oil sector—being a major crude producer yet struggling to meet its own domestic refining needs.
This raises a deeper question: how does a nation rich in natural resources find itself dependent on external systems to meet basic energy demands?
Middlemen and Rising Costs: A System Under Strain
The committee also raised concerns over the involvement of international intermediaries in crude oil transactions, describing the arrangement as exploitative.
According to Ugochinyere, crude produced in Nigeria is being sold to local refineries through middlemen based in London and Dubai, significantly inflating costs.
“For every barrel priced at $100, refineries pay $118, with the additional $18 going to intermediaries,” he revealed.
He added that the premium has surged from between $2–$4 per barrel to over $18, placing an unsustainable burden on domestic refiners.
Akahi News gathered that these added costs inevitably translate into higher pump prices for consumers, further deepening economic hardship.
But this situation invites a philosophical reflection: who truly benefits from a system where value is extracted without contribution? And at what point does inefficiency become a form of economic injustice?
Crude Quality Concerns and Domestic Policy Gaps
Beyond quantity, the committee also expressed dissatisfaction with the quality of crude being supplied to local refineries.
It noted that substandard grades are often delivered to facilities designed for higher-quality inputs, thereby reducing refining efficiency.
To address this, lawmakers called for prioritisation of high-grade crude from the Niger Delta and strict enforcement of the Domestic Crude Oil Supply Obligation under the Petroleum Industry Act (PIA) 2021.
They also urged the Presidential Technical Committee overseeing the crude-for-naira initiative to reconvene within 48 hours to resolve the bottlenecks.
Akahi News learnt that the committee has appealed to President Bola Tinubu to issue a decisive executive directive to ensure compliance by all stakeholders.
Global Tensions Amplify Local Vulnerabilities
The situation is further complicated by rising geopolitical tensions involving Iran, Israel, and the United States, which have disrupted global oil markets.
These developments have triggered volatility in crude oil prices, increasing the cost of refined petroleum products worldwide.
For Nigeria, the impact has been particularly severe due to its continued reliance on imported fuel.
In recent weeks, petrol prices have surged from around ₦746–₦850 per litre to over ₦1,200 in many parts of the country.
Akahi News gathered that the spike reflects not only global price shocks but also the weakening naira, rising logistics costs, and supply chain disruptions.
This reality raises another pressing question: can Nigeria truly shield itself from global economic shocks without achieving genuine energy self-sufficiency?
Warning Against Panic Buying, Call for Urgent Action
While urging Nigerians to remain calm and avoid panic buying, Ugochinyere warned that failure to act swiftly could result in widespread fuel queues, increased transport fares, and further inflation.
He stressed that it is unacceptable for Africa’s largest oil producer to face such persistent supply challenges.
The committee also extended goodwill messages to Muslims observing Eid al-Fitr and Christians preparing for Easter, calling for unity in addressing the nation’s economic difficulties.
A Defining Moment for Nigeria’s Energy Future
The unfolding situation presents a critical test for Nigeria’s energy policy and governance framework.
Will decisive action be taken to correct systemic inefficiencies, or will the country once again slip into a cycle of scarcity and economic strain?
As Nigerians watch closely, the stakes are high—not just for fuel availability, but for the broader credibility of reforms aimed at stabilising the nation’s economy.
In the end, one question lingers: can a nation truly claim sovereignty over its resources if it cannot control how they are refined, priced, and distributed?
For continued updates and in-depth analysis, stay with Akahi News.
🎓 Attend 2027/2028 JAMB, Post-UTME, WAEC, and NECO GCE Tutorials
Get fully prepared with expert tutors, comprehensive study materials, and personalised academic guidance at Akahi Tutors.
📍 Located at 67, Oduduwa College Road, Off Sabo Junction, Ile-Ife.
📞 Call: 08038644328
for enrollment and accommodation reservation.