The Modular refinery owners in Nigeria have predicted that the price of petrol could drop to around N300/litre once local refining capacity increases. This forecast comes as the Dangote Petroleum Refinery and other indigenous producers prepare to commence massive production.
Currently, Nigeria relies heavily on imported petroleum products, but the modular refinery owners believe that with adequate crude oil supply, local refining can meet the country’s demand and lead to a significant price drop.
The Crude Oil Refinery Owners Association of Nigeria (CORAN) emphasized that the success of local refining depends on the government’s commitment to providing crude oil to local refiners. They argued that refineries abroad are taking advantage of Nigeria’s reliance on imports, leading to higher prices for petroleum products.
CORAN’s Publicity Secretary, Eche Idoko, stated that once local refineries start producing petrol in large volumes, the price could drop to N300/litre, citing the example of diesel prices dropping after Dangote Refinery began production.
While some experts have expressed concerns about the impact of crude oil prices on the local refining industry, CORAN remains optimistic that with adequate support, local refining can transform Nigeria’s energy landscape.
Why It Matters:
- – The predicted price drop could have a significant impact on Nigeria’s economy and citizens’ purchasing power.
- – Local refining could reduce Nigeria’s reliance on imported petroleum products and strengthen the country’s energy security.
In Essence:
The modular refinery owners’ prediction highlights the potential for local refining to transform Nigeria’s energy landscape and reduce petroleum product prices.
However, the success of this endeavor depends on the government’s commitment to providing adequate crude oil supply and creating a business-friendly environment.
