Strengthen oil and gas value chain to enhance distribution: PENGASSAN to FG

—Tasks govt on bigger stake in Dangote refinery

UFOMBA UZUEGBU

Oil and gas workers under the aegis of the Petroleum and Gas Senior Staff Association, PENGASSAN, have called on the Federal Government, to develop and strengthen the country’s oil and gas value chain to ensure a more efficient and reliable distribution system down stream.

It stressed that without such a system, the country would continue for face recurring fuel shortages as its reliance on truck-based distribution system is deficient and inadequate to meet the demands of Nigerians given its disruptions due to bad roads, flooding and-logistic arrangements.

President of PENGASSAN, Comrade Festus Osifo, stated these during a media briefing in Lagos.

The briefing was on the presentation of the Association’s communiqué and recommendations from the 3rd edition of PENGASSAN’s Energy and Labour Summit (PEARLS 2024).

The communiqué was jointly signed by Osifo and Secretary-General, Comrade Lumumba Okugbawa.

Osifo restated the need for the Federal Government to provide CNG infrastructure across the country, noting that “Compressed Natural Gas,CNG, has been adjudged to be the most affordable and cleaner form of energy that is  required, to propel a car in the country today.

” Sadly, the infrastructure for this product is sparsely distributed across the country. The government through its partners, should deepen the reach of these infrastructure across every city in Nigeria”

Osifo urged the FG to increase its shareholding stake in Dangote Refinery from the current 7per cent to 45 per cent, stressing that this will ensure further energy assurance and security for citizens.

He also urged the federal government to create strategic petroleum products reserves, stressing also that government should partner with players in the private

sector to maintain the already available petroleum product storage in the six geo-political zones in the country.

“When operational, petroleum products will be stored there and only made available when there is shortage in supply.This will help in eliminating the bad roads and severe erosion-imposed perennial shortages that often lead to queues at petrol stations across the country”, the communique added.

On the floating of the naira leading to its devaluation, Osifo noted that it also contributed substantially to high cost of fuel pump price because of the dollar to naira conversion and not

the removal of fuel subsidy  by President Bola Tinubu on May 29, 2023.

He also argued that it caused high amount of revenue to the Federation Allocation s Accounts Committee and high revenue generations by government agencies and parastatals.

Osifo said;” Ramping up efforts to make the nation’s four refineries work: once operational, the government should divest majority shareholdings and own at least 49 percent shareholding in the four refineries. Core investors will be brought in to take the 51 per cent as applicable in NLNG.

“Expansion of pipelines that could be used in the delivery of refined petroleum products across the length and breath of the country as this will reduce the pressures put on our roads by  trucks carrying these products”.