The Nigerian House of Representatives has directed its Committees on Petroleum Resources (Downstream and Midstream) to investigate the reappearance of fuel queues at service stations nationwide and propose lasting solutions to the oil sector’s challenges. This decision followed a motion presented by Mr. Bill Osawaru from Edo State, emphasizing the urgent need for a forensic investigation into the downstream and midstream petroleum sectors.
Osawaru highlighted issues such as the high cost of petrol, unavailability of fuel stock for domestic refineries, and distribution disruptions. The House supported the motion, tasking the committees to investigate various concerns. These include the resurgence of fuel queues, high costs of Premium Motor Spirit (PMS), unavailability of fuel stock for domestic refineries, disruptions in PMS distribution, and unfair subsidization and racketeering in the Pro Forma Invoice System.
The committees will also examine the indiscriminate issuance of licenses for refined petroleum imports, the alleged return of PMS price intervention, product unavailability from NNPC Retail, delays in refinery rehabilitation, and malpractices at petrol depots. Additionally, they will look into the presence of middlemen in trading, the lack of laboratories for checking adulterated products, the influx of contaminated products, non-domestication of profits from crude sales, abuse of the PFI regime, importation of products already produced locally, and the use of international trading companies to resell fuel to local refineries.
Furthermore, the investigation will cover the importation of substandard products and high-sulphur diesel, the sale of petroleum products below fair market value, the source of funds for interventions, regulatory failures of NMDPRA and NUPRC, lack of support for local crude refiners, and issuance of import licenses despite local production.
The committees have four weeks to report back to the House for further legislative action. Osawaru emphasized allegations of unfair subsidization, racketeering, and favouritism in the Pro Forma Invoice System, impacting the sector’s competitiveness and efficiency. He also noted regulatory failures contributing to the current scarcity.
