Fakoyejo OlalekanThe National Controller Operations for the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mike Osatuyi, has disclosed that the commencement of refinery operations in Nigeria will not have a significant impact on fuel prices.
Osatuyi revealed that fuel prices will only drop by N60/N70 per litre should any refinery resume operation, as the country awaits the commencement of Dangote Refinery and Port Harcourt Refinery.
Note that the pump prices increased from N189 per litre to N500 in June, before it was further increased by the Nigerian National Petroleum Company (NNPC) Limited to N580 per litre in July.
Speaking on the impact of refineries on the prices of fuel across Nigeria, Osatuyi called for immediate repair, to reduce some expenses
“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,” Osatuyi stated on Wednesday.
IPMAN’s National Controller of Operations said the refineries would reduce insurance costs and end delays in the shipment of fuel into the country.
“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.”
Meanwhile, the President of the Trade Union Congress (TUC), Festus Osifo, said Dangote Refinery might not operate in August as scheduled.
Osifo said Dangote Refinery will most likely not start full production by the end of the year
“As of now, they may have their own mechanism, because it is 80 percent privately owned that we may not know. But from our external view, we don’t think that it will come into even up to 50 percent production before the end of the year,” he said.
TUC’s chief added: “You need crude to be doing some of the pre-commissioning stages. As of today, that has not quite commenced, but for the Dangote refinery, we are not quite sure whether it will come up between now and the end of the year.
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