Lawmakers warn of possible fuel scarcity and price surge
The House of Representatives Committee on Petroleum Resources (Downstream) has sounded the alarm over a looming fuel scarcity and potential spike in petrol prices across Nigeria. Committee chairman Ikenga Ugochinyere highlighted systemic inefficiencies and crude supply issues as key drivers of the crisis. He pointed to inadequate crude supply to the Dangote Refinery and the rising cost burden from international intermediaries. The committee urged urgent action to prevent widespread shortages and further economic hardship for Nigerians.
What we know
- The committee warned that unless supply challenges are resolved within 48 hours, Nigeria could face fuel shortages and higher petrol prices.
- Ikenga Ugochinyere revealed the Dangote Refinery is receiving only five cargoes of crude oil, far below the minimum 15 required for optimal operation.
- Local refineries are paying inflated prices for crude due to middlemen based in London and Dubai, with premiums rising from $2–$4 to over $18 per barrel.
- The committee called for strict enforcement of the Domestic Crude Oil Supply Obligation and an urgent review of crude quality standards.
- Recent petrol prices in Nigeria have surged from about ₦746–₦850 per litre to over ₦1,200 per litre, intensifying inflation and raising living costs for millions.
