The Nigeria Oil Marketers have expressed optimism that fuel prices could significantly decrease once the country’s local refining capacity is fully operational.
The National Controller of Operations for the Independent Petroleum Marketers Association of Nigeria, Mike Osatuyi, on Wednesday, emphasized the benefits of the Federal Government’s investment in functional refineries.
Osatuyi highlighted that although contracts for refinery revamping have been awarded, swift completion of repairs is crucial to alleviate the stress and financial burden of fuel imports on the nation.
“If the refineries are working, it would cut freight and ship-to-ship transfer costs, resulting in a reduction of not less than N60/N70 per litre,” he stated.
In addition to the price reduction, operational local refineries would yield various other advantages, including decreased insurance costs, faster product delivery times, and increased employment opportunities.
By refining domestically, the cost of insurance would reduce significantly, and product shipments would arrive within one day, instead of the current 30-day wait for imported shipments.
Furthermore, operational refineries would generate more job opportunities, benefiting the masses and fostering economic growth.
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Tunji Oyebanji, a former Chairman of the Major Oil Marketers Association of Nigeria, emphasized that marketers preferred local refining over product imports, indicating their support for the development and functionality of local refineries.
Currently, Nigeria relies heavily on petrol imports due to the absence of fully functional local refineries. Since the removal of fuel subsidies on May 29, petrol prices have experienced a significant surge, soaring from about N198/N200 per litre to N617 per litre.
Consequently, local fuel consumption has decreased by 30 percent from the previous level of 66 million litres per day.
To address the social problems arising from the increase in pump prices, Chinedu Okonkwo, the National President of IPMAN, proposed adopting the global alternative clean energy concept of Compressed Natural Gas (CNG).
He highlighted that CNG could power homes, public, and private establishments at minimal costs compared to other energy sources, offering a viable and sustainable solution to mitigate the impact of fuel price increases.
The successful operation of local refineries in Nigeria holds the potential to significantly reduce fuel prices, lower importation costs, and create numerous employment opportunities.
As the country progresses toward greater energy self-sufficiency and explores alternative clean energy sources like CNG, it can address fuel-related challenges and promote economic growth in the long run.
