Newsry news
4th September, 2023
Petroleum marketers have revealed that petrol prices would reduce if Nigeria begins to refine the product locally
Mike Osatuyi, IPMAN National Controller of Operations, said local refining would reduce the burden of imports on Nigeria
The development comes amid reports that petrol produced in Nigeria’s refineries will fall off-spec in two years
Oil marketers say that immediately after local refining of petroleum products is fully operational, the cost of petrol will go down by at least N70 per litre.
Mike Osatuyi, the National Controller of Operations for the Independent Petroleum Marketers Association of Nigeria (IPMAN), said this when recently discussing the benefits of the Nigerian government’s investment in functional refineries.
Contracts for refinery production has been awarded, Osatuyi told journalists that despite contracts for refurbishing the refineries being awarded, it be a good development for the repairs to be finalized soon to reduce the stress and substantial burden of imports on the country.
He said “The contract was already awarded before the new government came into office. IPMAN doesn’t know the context of the agreement, but if the refineries are working, it will cut freight and ship-to-ship transfer costs.
“Cost of insurance would reduce, and then if we keep importing, it takes about 30 days for ships to arrive in Nigeria, and we would have to pay for hiring the vessel.
“But if we refine in the country, products would arrive within one day. There will also be more jobs for the masses. It’s a lot of benefits,” he said.
Meanwhile, the Nigerian National Petroleum Company Limited (NNPC) is spending almost $3 billion to refurbish Nigeria’s three refineries.
It was reported that President Bola Tinubu has promised that the Port Harcourt refinery will begin operations by December 2023.
Tinubu disclosed this through a statement issued by Dele Alake, the special adviser to the president on special duties, communications, and strategy.
Tinubu promised that production would begin after the ongoing rehabilitation contract between Nigerian National Petroleum Company (NNPC) Limited and Maire Tecnimont SpA was completed.
