Oil marketers, have stated that the implementation of local refining is projected to result in a reduction of at least N70 per litre in the price of fuel once it reaches full operational capacity.
According to the National Controller Operations of the Independent Petroleum Marketers Association of Nigeria,Mike Osatuyi, investing in functional refineries by the Federal Government offers several advantages.
It would be a terrific development, he said, for repairs to be finished as quickly as possible, to lessen the strain and significant financial burden of imports on the nation, even though contracts for revamping refineries had been issued.
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.”
Other advantages of operational local refining that he highlighted included a rise in employment, a decrease in insurance costs, and a faster delivery of products.
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.”
According to a former Chairman of the Major Oil Marketers Association of Nigeria and Chairman/Chief Executive of 11 Plc, Tunji Oyebanji, there is no preference among marketers for product importation as opposed to local manufacture.
“We want local refineries to work because we don’t enjoy importing,” he said.
