Petrol price Will Slash by N70 Petrol Per Litre when refining is operational — Oil Marketers

Oil marketers have said that once local refining is fully operational, the cost of petrol will be reduced by at least N70 a litre.
This was said by Mike Osatuyi, National Controller Operations for the Independent Petroleum Marketers Association of Nigeria (IPMAN), when discussing the advantages of the Federal Government’s investment in working refineries.
According to him, it would be a great development for repairs to be finished as quickly as possible in order to reduce the strain and significant financial burden of imports on the nation, even though contracts for revamping refineries have already been issued.
“The contract has been awarded already before the new government came into office. IPMAN doesn’t know the context of the contract, but if the refineries are working, it would cut 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 that he highlighted included a rise in employment, a decrease in insurance costs, and a faster delivery of products.
“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.”
Tunji Oyebanji, the Chairman/Chief Executive of 11 Plc and a former chairman of the Major Oil Marketers Association of Nigeria, stated that marketers do not favour importing goods above domestic production.
“We want local refineries to work because we don’t enjoy importing,” he said.
Nigeria continued to import a significant amount of petrol because there were no operating refineries there.
Petrol prices have increased dramatically since subsidies were removed on May 29. They went from around N198/N200 per litre to N617 per litre.
Since the removal of subsidies, local consumption has decreased by 30% from the pre-subsidy record of 66 million litres per day.
In response to the agitated social issues caused by the rise in petrol pump prices, IPMAN’s national president, Chinedu Oknokwo, stated during a House of Representatives Public Hearing on Tuesday that Compressed Natural Gas should be quickly adopted as a clean, alternative energy source.

Source: Allnews Nigeria

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