Local Refining Will Reduce Petrol Price To N70/Liter – Petrol Marketer

By Sola Omoniyi, Lagos

Mike Osatuyi, the National Controller of Operations of the Independent Petroleum Marketers Association of Nigeria (IPMAN ) has stated that local refining will reduce petroleum prices to N70 per litre.

Osatuyi stated this in an interview with Newsmen on Wednesday, August 2, 2023.

Osatuyi, who spoke extensively on the benefits of functional local refineries said the Federal Government has awarded contracts to revamp the refineries.

He said he hoped the repairs would be completed as soon as possible to ease the stress of finance of importation on the country.

“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,” he said.

Other benefits of functional local refining according to Osatuyi include a reduction in insurance costs, a reduction in product delivery time, and an increase in employment.

“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,” he explained.

Meanwhile, President Bola Ahmed Tinubu has assured Nigerians that the Port Harcourt refinery will commence operations by December 2023.

This was disclosed in a statement issued by the Special Adviser to the President on Special Duties, Communications and Strategy, Dele Alake on Wednesday, August 2, 2023, following the President’s meeting with leaders of various labour unions at the State House, Abuja.

“President Tinubu gave his commitment to the Labour leaders that the Port Harcourt refineries will start production by December 2023 after the completion of the ongoing rehabilitation contract between NNPCL and Italian firm, Maire Tecnimont SpA,” Alake said.

Petrol Prices increased astronomically in Nigeria after President Tinubu announced that his government would not subsidise fuel consumption.