When fully operational, local refining, according to oil marketers, will reduce fuel prices by at least N70 a litre.
Anaedoonline.ng learned that Mike Osatuyi, National Controller Operations for the Independent Petroleum Marketers Association of Nigeria (IPMAN), said that local refining would lower insurance costs, speed up product delivery, and create more jobs, all of which would result in lower rates for related fees.
The Federal Government will gain from investing in the refineries, he said in a statement to The Punch on Wednesday.
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President Bola Tinubu had previously stated that the Port Harcourt refinery will be operational by December.
Although the contracts for renovating refineries had been given out, in his opinion, it would be a good development for repairs to be finished as quickly as possible to reduce the strain and significant financial burden of imports on the nation.
He said, “The contract was already awarded before the new government entered 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.
“Not less than N60/N70 per litre will be off if the refineries start working.
“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.
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“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.”
Marketers prefer indigenous production to importation, according to Tunji Oyebanji, a former chairman of the Major Oil Marketers Association of Nigeria (MOMAN) and chairman/chief executive of 11 Plc.
We don’t like importing, he remarked, so we want the local refineries to be operational.
Nigeria continued to import a significant amount of its gasoline due to a lack of operational local refineries.
Since subsidies were eliminated on May 29, the price of gasoline has skyrocketed, jumping from roughly N198/N200 per litre to N617 per litre.
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Since the removal of subsidies, local consumption has decreased by 30% from the pre-subsidy record of 66 million liters per day.
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