Operators in the downstream oil sector said the importation
of PMS was no longer a viable business, considering the difficulty in accessing
the United States dollar required for imports.
They told our correspondent on Friday that since the
government had promised to get the refineries up and running by December, it
was best to hold on and source refined petroleum products from the facilities
locally.
“If I heard the new petroleum minister correctly, he
recently said that by December there won’t be need for importation, which means
the refineries will be up and running,” the National President, Independent
Petroleum Marketers Association of Nigeria, Chinedu Okonkwo, stated.
He added, “So what we are looking at is availability and if
it our crude is refined locally in Nigeria, that will be the game changer.
Importation (of petroleum products) is not the way to go.
“This is because the pressure to get dollars for importation
is high. So if we follow what they (government) have said, importation of
petrol should be over by December and we will access products locally.”
Towards the end of August, the Federal Government announced
that the Port Harcourt refinery would begin operations by December 2023.
The Minister of State for Petroleum Resources (Oil),
Heineken Lokpobiri, had disclosed this in Port Harcourt, Rivers State, during
an inspection tour of the rehabilitation work at the Port Harcourt Refining
Company Limited plant.
He was quoted in a statement issued by the Nigerian National
Petroleum Company Limited as saying, “From what we have seen here today, Port
Harcourt Refinery will come on board by the end of the year, Warri will come on
stream by the end of the first quarter of next year, and Kaduna will also come
on board towards the end of next year.
“If you add that to the Dangote Refinery, we will be able to
stop fuel importation, and Nigerians will enjoy the full benefits of
deregulation.”
Explaining why refineries should come on stream and the
impact this would have on the downstream oil sector, Okonkwo said the
facilities would not only create jobs, but would lead to PMS price reduction.
The IPMAN president stated, “It will reduce the dependence
on imported products from other countries. It will also create jobs. The jobs
that we are giving to other people who are refining our crude will now be done
here in Nigeria.
“And ultimately, the transportation or logistics will be
cushioned and though the crude is going to be sold in dollars, one thing is
certain, that transportation or cost of moving it in and out of Nigeria will
now be reduced.
“But moving forward, availability will now be guaranteed and
I think it is a welcome development that should be given the desired push.”
On concerns that marketers were currently finding it tough
to operate, while some operators of smaller filling stations were considering
merger, Okonkwo said, “Even the rich are now crying.
“The economic crunch is hitting everyone, not only oil
marketers, but we are optimistic that there will be improvements, particularly
when we start refining locally in Nigeria.”