Oil marketers in Nigeria have highlighted the potential cost savings and benefits of local refining, stating that it could save at least N70 per litre off petrol prices when fully operational. The National Controller Operations of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mike Osatuyi, emphasized the need for the Federal Government to invest in functional refineries, as it would ease the financial burden and stress of petrol importation on the country. He mentioned that operational local refining could cut freight and ship-to-ship transfer costs, resulting in substantial savings for consumers.
Apart from cost savings, local refining would also lead to a reduction in insurance expenses and product delivery time, as products would arrive within one day if refined in the country. Additionally, it is expected to create more job opportunities for the masses.
Tunji Oyebanji, a former Chairman of the Major Oil Marketers Association of Nigeria, also expressed the preference for local refining over product importation. Currently, Nigeria heavily relies on petrol importation due to the lack of functional local refineries.
The removal of fuel subsidies on May 29 resulted in a significant increase in petrol prices, rising from about N198/N200 per litre to N617 per litre. Consequently, local consumption dropped by 30 per cent from the pre-subsidy removal figure of 66 million litres per day.
Chinedu Oknokwo, the National President of IPMAN, advocated for adopting the global alternative clean energy concept of Compressed Natural Gas (CNG) as a solution to the challenges posed by increasing pump prices of petroleum products. CNG is seen as a more cost-effective alternative for powering homes, public, official, and private establishments compared to other options.