Marketers say fuel price will reduce by N70/litre if refineries are functional

Oil marketers claim 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, when discussing the advantages of the Federal Government’s investment in working refineries, on Wednesday.

He told the media that even though the contracts for renovating the refineries had been issued, it would be a great development for repairs to be finished as soon as possible in order to reduce the strain and significant financial burden of importation on the nation.

Read Also: IPMAN protests, as NNPC cancels pre-subsidy removal agreement with marketers

He said, “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 listed other benefits of operational local refining as reduction in insurance costs, reduction in product delivery time, and increase in employment.

According to him, “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.”

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now