In a recent development, the Major Oil Marketers Association of Nigeria (MOMAN) has weighed in on the possibility of reducing the price of petrol to N200 per litre in the country, debunking earlier claims that this could be achieved solely through the revival of the nation’s refineries. The assertion by MOMAN comes in the wake of statements made by the Independent Petroleum Marketers Association of Nigeria (IPMAN), which had raised hopes of a significant price reduction if refineries were brought back to full functionality.
Joseph Obele, the Chairman of IPMAN’s Rivers State Chapter, had urged the Federal Government to expedite the repair and upgrading of Nigeria’s refineries, stating, “Until our nation-owned refineries are functional, fuel prices will keep increasing due to international variables. But when our refineries are functional, Nigerians will buy fuel for less than N200 per litre.” Obele attributed the recent fuel price fluctuations to a scarcity of dollars, making it challenging for importers to continue importing petroleum products.
However, Tunji Oyebanji, the Chief Executive Officer and former chairman of MOMAN, shed light on the complexities involved in the determination of petrol prices. Oyebanji emphasized that factors like the exchange rate of the dollar and international crude oil prices were exerting significant pressure on fuel costs in Nigeria.
He pointed out that the scarcity of dollars had disrupted the petroleum distribution chain, affecting the prices at the pump. This disruption, he said, was evident on the NNPC buying portal used by marketers. Additionally, Oyebanji highlighted the impact of the international market’s demand for crude oil and production cuts enforced by the Organization of the Petroleum Exporting Countries (OPEC) on the rising trend of crude oil prices.
READ ALSO: NNPC Planning To Reduce Fuel Price To N600 per Litre as Global Crude Prices Soar
MOMAN’s perspective underscores the multifaceted nature of the challenges faced in reducing petrol prices in Nigeria. While the revival of domestic refineries is an important step towards achieving self-sufficiency in petroleum production, it is just one part of a more complex equation. The association suggests that addressing exchange rate fluctuations and navigating the intricate dynamics of the global oil market are equally crucial aspects that demand attention.
As Nigerians continue to grapple with fluctuating fuel prices, it is evident that a holistic approach is needed to stabilize the cost of petrol at the pump. While the idea of petrol prices dropping to N200 per litre remains a desirable goal, the realities of international factors and economic dynamics may present formidable hurdles along the way. As such, the Nigerian government and relevant stakeholders must work collectively to find sustainable solutions to alleviate the burden of high fuel prices on citizens.
Finally, the road to reducing petrol prices to N200 per litre in Nigeria is fraught with challenges that extend beyond the mere revival of refineries. The insights provided by MOMAN serve as a reminder of the intricate web of factors influencing fuel costs, emphasizing the need for a comprehensive strategy to address these issues and provide relief to consumers.
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