Business
MAURICE Ibe, an Oil and Gas Industry Consultant has tasked the Nigerian National Petroleum Company Limited (NNPC Ltd.) to ensure that the four government refineries are functioning at full capacity.
Ibe, who is the Group Executive Chairman of the Benham Group, made this known in an interview with the News Agency of Nigeria (NAN), Abuja on Saturday.
Ibe said that without effective and functional refining system, Nigerians would never see a reasonable drop in petroleum prices soon.
He said that until the Port Harcourt, Warri and Kaduna refineries started working optimally and producing at full capacity, the country would still be dependent on Dangote refinery.
He said the functionality of the refineries would create competition in the sector and ensure fuel pump price reduction.
“The Port Harcourt Refinery is functional, but the truth of the matter is that it is not producing at full capacity to enable us have the level of impact that it should have on pump prices.
“We are hoping that with time, it will start producing well enough for independent petroleum marketers to load, including every other private petroleum dealer.
“If it is functional at full capacity, there is no way we will not be seeing an average of 200 trucks rolling out of the refinery every day, ‘’ he said.
The expert, who is also a consultant to the Independent Petroleum Marketers Association of Nigeria (IPMAN), highlighted some basic yardstick and parameters to measure refineries functionality.
He said a functional refinery firstly, must have the capacity to load at least 200 trucks of 50,000 litres of fuel daily.
He also said that if the Port Harcourt refinery was producing at full capacity, pump prices would have dropped in Port Harcourt, Aba, Owerri, Umuahia, Enugu and nationwide.
“Irrespective of what the NNPC Ltd. and dignitaries are saying concerning the refinery, the fact remains that the basic yardstick to measure the success or productivity of the refinery is still lacking.
“There have been some loadings from the refinery but it has not loaded more than 10 trucks daily since it resumed. I have my members on ground.
“If it was working at 70 per cent capacity, there was no way we would not be having at least 50-60 trucks loading per day.
“The independent petroleum marketers have more fuel stations across the country than the major marketers and NNPC Ltd. too.
“No matter what it loads, if the IPMAN whom I consult for have not started loading, you cannot make an impact nationwide.
“Dangote Refinery is doing its best but government needs to come down a little hard on the NNPC to ensure the rest of the refineries are functional for Nigerians to feel the impact of reduced pump prices,’’ he said.
He said Dangote, as a private refinery, would set prices based on cost of production, hence, the country should not fully be dependent on the refinery.
He explained that since the sector was being operated under a Petroleum Industry Act (PIA 2021) which has deregulated the industry, through subsidy removal, products were sold based on market forces.
“But to help alleviate the suffering of Nigerians, government refineries must work at full capacity,’’ the expert warned.
Speaking on the new ex-depot price of N899, he said though ex-depot price dropped following the downward reviewed price announced by the two refineries, but the fact remained that IPMAN had not started loading according to the price.
According to him, the new prices will reflect at the fuel outlets once the marketers load new products.
NAN recalls that the old Port Harcourt refinery with 70 per cent operational capacity began truck out at petroleum products on Nov. 26.
It has its daily output as Premium Motor Spirit (PMS, Household Kerosene (HHK), Automotive Gas Oil (AGO) and Low Pour Fuel Oil (LPFO) (NAN)
A.I
Dec. 28, 2024
Tags: Maurice Ibe
