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Ndokwa Vanguard

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Local refining will reduce petrol price by N70/ltr – Marketers

Aug 3, 2023 #News

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said local refining of crude oil will save at least N70 per litre off petrol price when it is fully operational.

IPMAN’s National Controller Operations, Mike Osatuyi, disclosed this on Wednesday, August 2, while outlining benefits of federal government’s investment in functional refineries.

Osatuyi who spoke to Punch, said investment in functional refineries will ease the stress and huge finance on importation in the country. It would also reduce insurance costs, reduce product delivery time, and increase employment.

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. 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.”

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