The operators of modular refineries claimed on Sunday that when the Dangote Petroleum Refinery and other indigenous producers begin huge output, the pump price of Premium Motor Spirit, also known as petrol, should drop to roughly N300/litre.
They emphasised that foreign refineries were taking advantage of Nigeria, but they also pointed out that this would only be possible if the government made sure that local refiners had access to enough crude oil, according to PUNCH.
Speaking on behalf of the Crude Oil Refinery Owners Association of Nigeria, they clarified that the price of petrol will follow the same course as the cost of diesel after Dangote began manufacturing it on a large scale in Nigeria.
Nigerian modular and conventional refinery firms are recognised as members of CORAN.
“A lot of companies today benefit from the importation of petroleum products at the expense of Nigerians,” the Publicity Secretary, CORAN, Eche Idoko, stated.
He told our correspondent that “if we begin to produce PMS today in large volumes, provided there is adequate crude oil supply, I can assure that we should be able to buy PMS at N300/litre as the pump price.
“Why make Nigerians buy it at almost N700/litre when you know that if you allow refineries work the price will come down? Is it because you want to satisfy the global refiners abroad that are making so much from us?”
The CORAN official argued that petrol prices would skyrocket once it is manufactured in large quantities by domestic refiners, despite concerns that such a price decrease is not feasible because crude oil, the basic material for PMS, is priced in dollars.
He said, “We were selling diesel for N1,700 to N1,800/litre, but as soon as Dangote refinery started production he brought down the price to N1,200/litre. What other proofs do you need?
As I speak to you, there is every indication that the price of diesel will decline even further before December. Our exchange rate is the only reason diesel isn’t selling for less than N1,000 a litre.
“If the exchange rate drops, diesel will drop below the N1,000/litre price. Now the exchange rate concern is because Dangote imports crude. If he is not importing, the exchange rate may not have so much effect, though he is still buying crude in dollars (in Nigeria) anyway.”
