Marketers Reveal Petrol Price Will Reduce by N70/Litre as Tinubu Fixes Date For PH Refinery Production

Marketers Reveal Petrol Price Will Reduce by N70/Litre as Tinubu Fixes Date For PH Refinery Production

  • Petroleum marketers have revealed that petrol prices would reduce if Nigeria begins to refine the product locally
  • Mike Osatuyi, IPMAN National Controller of Operations, said local refining would reduce the burden of imports on Nigeria
  • The development comes amid reports that petrol produced in Nigeria’s refineries will fall off-spec in two years

Oil marketers say that immediately after local refining of petroleum products is fully operational, the cost of petrol will go down by at least N70 per litre.

Mike Osatuyi, the National Controller of Operations for the Independent Petroleum Marketers Association of Nigeria (IPMAN), said this when recently discussing the benefits of the Nigerian government’s investment in functional refineries.

Petrol attendant. PH refinery
Petrol marketers to reduce cost by N70/litre, Tinubu sets new date Credit: Bloomberg/Contributor
Source: Getty Images

Contracts for refinery production awarded

Osatuyi told journalists that despite contracts for refurbishing the refineries being awarded, it be a good development for the repairs to be finalized soon to reduce the stress and substantial burden of imports on the country.

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Osatuyi said:

“The contract was already awarded before the new government came into office. IPMAN doesn’t know the context of the agreement, but if the refineries are working, it will cut freight and ship-to-ship transfer costs.
“Not less than N60/N70 per litre will be off if the refineries start working.”

Reports say Osatuyi revealed the benefits to include operational refineries as a reduction in insurance costs, product delivery time, and 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 said.

Petrol from NNPC refineries to go off-spec in 2 years

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Meanwhile, the Nigerian National Petroleum Company Limited (NNPC) is spending almost $3 billion to refurbish Nigeria’s three refineries. Still, reports say the petrol produced from the refineries will fall below standard in Africa by 2025.

Experts say the development could threaten the health of Nigerians and their vehicles as the world pivots to fuels with lower sulphur.

They say the three refineries use sulphur for petrol production.

The quality of refined petrol improved over the years from 300 per million (PPM) of sulphur to 150 ppm, the standard rule drafted by the Standards Organisation of Nigeria (SON) in July 2017.

BusinessDay reports that NNPC cannot meet the standard because, as of 2019, the refineries produced PMS with sulphur content ranging from 100 ppm to 300 ppm and diesel with sulphur content ranging from 800 ppm to 1,500 ppm.

“It’s a Promise”: Tinubu assures Nigerians Port Harcourt refinery will work, sets date for first production

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Fuel scarcity looms as Independent Petroleum Marketers in the North threaten to shutdown operations reported that President Bola Tinubu has promised that the Port Harcourt refinery will begin operations by December 2023.

Tinubu disclosed this through a statement issued by Dele Alake, the special adviser to the president on special duties, communications, and strategy, on Wednesday, August 2, 2023.

The statement noted that the president gave the assurance when he spoke at a meeting with the leadership of the Nigeria Labour Congress (NLC) led by Joe Ajaero, its president, and that of the Trade Union Congress, Festus Usifo.

Tinubu promised that production would begin after the ongoing rehabilitation contract between Nigerian National Petroleum Company (NNPC) Limited and Maire Tecnimont SpA was completed.


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