Oil marketers claim that domestic refining could cut the current petrol price by at least N70 per liter once fully operational. The National Controller Operations of the Independent Petroleum Marketers Association of Nigeria, Mike Osatuyi, shared this while discussing the benefits of government investments in functioning refineries.
Osatuyi stated that while contracts for refinery revamps have been granted, a quick completion would alleviate the country’s importation financial burden. He argued, “If the refineries are working, it would cut freight and ship-to-ship transfer costs. Not less than N60/N70 per liter will be off if the refineries start working.”
He also enumerated other benefits, such as decreased insurance costs, faster product delivery time, and increased employment opportunities. “If we refine in the country, products would arrive within one day. There will also be more jobs for the masses,” he said.
Despite Nigeria’s heavy reliance on petrol imports due to a lack of functional local refineries, marketers prefer domestic production. Tunji Oyebanji, former Chairman of the Major Oil Marketers Association of Nigeria, affirmed, “We want local refineries to work because we don’t enjoy importing.”
Since the subsidy removal on May 29, petrol prices have dramatically soared from about N198/N200 per liter to N617 per liter, leading to a 30% reduction in local consumption. To address the social issues caused by the fuel price increase, IPMAN’s National President, Chinedu Oknokwo, suggested adopting the global alternative clean energy concept of Compressed Natural Gas (CNG), which would help power homes and establishments at lower costs.