Oil marketers have highlighted the potential cost benefits of local refining, asserting that it could lead to a significant reduction in petrol prices by at least N70 per litre once the refineries are fully operational. Mike Osatuyi, the National Controller Operations of the Independent Petroleum Marketers Association of Nigeria, discussed the advantages of the Federal Government’s investment in functional refineries.
Osatuyi expressed the urgent need for completing the revamping of refineries to alleviate the stress and financial burden of importing petroleum products into the country. Although the contracts for refinery revamping have been awarded, he emphasized the importance of swift repairs to unlock the benefits.
He further explained that operational refineries would cut costs related to freight and ship-to-ship transfer, translating to potential savings of not less than N60/N70 per litre. This reduction in petrol prices could bring much-needed relief to consumers and alleviate the financial strain caused by high fuel costs.
Additionally, the benefits of local refining extend beyond cost savings. Osatuyi listed other advantages, including lower insurance costs, reduced product delivery time, and increased employment opportunities. By having functional refineries, the country would experience a decline in insurance expenses, and the need to import petroleum products over long periods would be eliminated, thereby reducing vessel hiring expenses.
Overall, the local refining of petroleum products is seen as a crucial step towards achieving a more sustainable and economically viable energy sector in Nigeria.
