When fully operational, local refining will save at least N70 per liter on petrol prices, according to oil marketers.
Mike Osatuyi, National Controller Operations of the Independent Petroleum Marketers Association of Nigeria, stated this while discussing the benefits of the Federal Government investing in operational refineries.
In an interview on Wednesday, he stated that, while contracts for renovating refineries have been issued, it would be a great development for repairs to be finished as quickly as possible to alleviate the country’s stress and tremendous financial burden of importing.
“The contract was already awarded before the new government took office,” he claimed. IPMAN is unaware of the contract’s specifics, but if the refineries are operational, it will reduce freight and ship-to-ship transfer costs.
“Not less than N60/N70 per litre will be off if the refineries start working.”
Other advantages of operational local refining include lower insurance costs, faster product delivery, and increased employment.
“The cost of insurance would decrease, and then if we keep importing, ships would arrive in Nigeria in about 30 days, and we would have to pay for hiring the vessel,” he says.
“However, if we refine in-country, products would arrive within a day.” There will also be more jobs for the general public. There are numerous advantages.”
Tunji Oyebanji, former Chairman of the Major Oil Marketers Association of Nigeria and Chairman of 11 Plc stated that marketers did not prefer product imports over local manufacture.
“We want local refineries to work because we don’t enjoy importing,” he explained.
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Due to a lack of functional local refineries, Nigeria still relied significantly on petrol imports.
Since the elimination of subsidies on May 29, petrol prices have skyrocketed, going from around N198/N200 per liter to N617 per liter.
Local usage has since reduced by 30% from 66 million litres per day before subsidies were removed.
Chinedu Oknokwo, National President of IPMAN, stated during a House of Representatives Public Hearing on Tuesday that there was a need to quickly adopt the global alternative clean energy concept of compressed natural gas in order to provide solutions to the animated social problems of pump price increases of petroleum products.
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