Oil marketers in Nigeria have stated that local refining of petroleum will reduce petrol prices by at least N70 per litre when the refineries are fully operational. The National Controller Operations of the Independent Petroleum Marketers Association of Nigeria, Mike Osatuyi, emphasized the benefits of the Federal Government investing in functional refineries.
Although, the contracts for refurbishing the refineries have been awarded, Osatuyi urged for quick completion of the repairs to alleviate the financial burden and stress of importing fuel into the country. He listed various advantages of local refining, including reduced freight and ship-to-ship transfer costs, lower insurance costs, faster product delivery time, and increased employment opportunities.
Another oil marketer, Tunji Oyebanji, expressed a preference for local production over product importation, stating that they want the local refineries to operate efficiently. Currently, Nigeria heavily relies on petrol importation due to the lack of functional local refineries. Since the removal of fuel subsidies, petrol prices have significantly increased, reaching as high as N617 per litre. Consequently, local consumption has dropped by 30 per cent from the previous 66 million litres per day.
During a House of Representatives Public Hearing, the National President of IPMAN, Chinedu Oknokwo, suggested adopting Compressed Natural Gas (CNG) as a global alternative clean energy concept to address the challenges posed by rising petrol prices. He believes that CNG would be a cost-effective solution for powering homes, public, and private establishments.