Oil marketers have revealed that the implementation of local refining will lead to a significant reduction in petrol prices by N70 per litre. The National Controller Operations of the Independent Petroleum Marketers Association of Nigeria, Mike Osatuyi, emphasized the benefits of the Federal Government investing in operational refineries.
While speaking to The PUNCH, Osatuyi stated that the contracts for revamping refineries had already been awarded, and completing the repairs swiftly would alleviate the burden and costly importation on the country. He explained that working refineries would cut freight and ship-to-ship transfer costs, ultimately resulting in a reduction of N60/N70 per litre.
Apart from cost savings, operational local refining would lead to a reduction in insurance expenses and product delivery time. Currently, Nigeria heavily relies on petrol importation due to the lack of functional local refineries, resulting in skyrocketing prices since the removal of subsidies on May 29. Consequently, local consumption has dropped by 30 percent from pre-subsidy removal levels.
Oil marketers expressed their preference for local refineries to be operational as they do not enjoy importing products. They believe that working refineries would create more jobs for the masses and stimulate the economy positively.
During a House of Representatives Public Hearing, the National President of IPMAN, Chinedu Okonkwo, proposed adopting the global alternative clean energy concept of Compressed Natural Gas (CNG) as a solution to the pump price increase of petroleum products. Okonkwo highlighted that CNG could efficiently power homes, public, official, and private establishments at minimal costs compared to other alternatives.
The promotion of local refining is seen as a crucial step in stabilizing petrol prices, reducing dependency on imports, and boosting the nation’s energy security. As the contracts for revamping refineries are already in place, industry experts urge the government to expedite the repairs to unlock the potential benefits for the country.
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