The House of Representatives Committee on Petroleum Resources (Downstream) has issued a warning that Nigeria could experience a fresh round of fuel scarcity and rising petrol prices within 48 hours if urgent interventions are not taken to resolve crude supply constraints affecting domestic refineries.
The committee chairman, Ikenga Imo-Ugochinyere, gave the warning during a press briefing in Abuja, describing the situation as a serious threat to economic stability and the wellbeing of citizens.
He cautioned that delays in addressing the challenges could lead to renewed fuel queues, supply disruptions, and increased financial pressure on Nigerians due to higher pump prices.
According to him, the committee’s oversight findings suggest a high probability of an increase in the price of Premium Motor Spirit (PMS), attributing the trend to inefficiencies in the supply chain rather than deliberate government policy.
Ugochinyere identified insufficient crude allocation to the Dangote Refinery as a key concern, noting that the facility—which is central to domestic fuel supply stability—is currently operating below capacity.
He explained that although the refinery is entitled to about 21 cargoes of crude oil and requires at least 15 cargoes to operate efficiently, it is currently receiving only five cargoes, which he described as inadequate.
“This shortfall is already undermining refining capacity and poses a direct risk to fuel availability across the country,” he said.
The committee also raised concerns about the quality of crude being supplied, describing it as below the standard required for a refinery of such scale and importance. It stressed that locally refined crude from the Niger Delta should meet higher quality benchmarks to ensure optimal performance.
Ugochinyere further highlighted the rising cost burden on domestic refiners, noting that they now pay over $18 per barrel to foreign intermediaries, compared to the previous range of $2 to $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 arrangement as exploitative, warning that such added costs are ultimately transferred to consumers through higher fuel prices and unstable supply.
To prevent the anticipated crisis, the committee urged the Presidential Technical Committee on the Crude-for-Naira initiative to reconvene within 48 hours to resolve the supply bottlenecks. It also called for strict enforcement of the Domestic Crude Oil Supply Obligation under the Petroleum Industry Act (PIA) 2021 and a review of crude quality standards.
The chairman further appealed to President Bola Ahmed Tinubu to issue stronger directives to ensure compliance and protect Nigeria’s domestic energy supply chain.
While urging Nigerians to remain calm and avoid panic buying, he warned that inaction could result in widespread scarcity, renewed queues at filling stations, and increased transportation and living costs.
He also noted that despite Nigeria’s status as a major crude oil producer, the country continues to face challenges in adequately supplying its own refineries with locally produced crude.
Meanwhile, fuel supply concerns have been compounded by rising global crude oil prices linked to recent geopolitical tensions, contributing to higher petrol prices in Nigeria in recent weeks.
