Subsidy regime, distribution method reasons for lingering fuel shortage – Expert

By Adeleye Kunle

An oil and gas expert has disclosed that subsidy regime, opaque method of distribution, insecurity, oil theft and point of distribution challenges are the reasons for the lingering fuel shortage in Nigeria.

Gbenga Adeoye, an oil and gas expert who doubles as a chartered accountant, said this in Track News monitored on Saturday.

Adeoye said the Organisation of Petroleum Exporting Countries, OPEC, also contributes to the challenges facing Nigeria’s oil and gas industry.

He says, “OPEC determining the crude oil we export is a problem. I am advocating that we can’t allow OPEC to decide what we produce and buy in the international and domestic markets. We may have to go the way of Gaddafi in Libya. You can’t allow OPEC to decide how much you sell crude to your people for domestic consumption. Government needs to do marginal costing by determining the break-even price.

“Method of Distribution, it is only in Nigeria you see tankers loaded with fuel moving around the country; Also Point of Distribution, should be in the six geopolitical zones rather than through a pipeline or rail linked to these locations”, he said.

He added that “subsidy, insecurity, theft of crude and finished product are part of the problem of fuel scarcity”