Nigeria to Save Approximately N367.2 Billion Yearly by Refining Locally

Nigeria to Save Approximately N367.2 Billion Yearly by Refining Locally

Nigerian National Petroleum Company Limited (NNPCL) has announced that Nigeria will save roughly N367.2 billion a year by locally refining crude oil into Premium Motor Spirit, also known as petrol.
The Group Chief Executive Officer of NNPC said the logistical cost associated with the supply of fuel in Nigeria would be reduced by around N17/litre if crude oil were refined into PMS.
This was also corroborated by oil merchants on Wednesday, who told our correspondent that it was past time for the Federal Government to start operating Nigeria’s refineries under NNPC due to the significant advantages it would bring the nation.

NNPC provides more than 60 million litres of gasoline each day to keep Nigeria supplied with the substance. A N17/litre reduction in logistics costs equates to daily savings of N1.02 billion.
Based on this, Nigeria will save approximately N367 billion yearly once the nation begins producing gasoline domestically at the Dangote Refinery and the nation’s other refineries managed by the NNPC.

The Port Harcourt and Warri refineries are expected to be operational in the first half of this year, according to Kyari, who made these remarks during a show on Nigeria Television Authority that was made accessible to our correspondent in Abuja on Wednesday.
However, he emphasised that although there would be some price increases in terms of logistics, the local refining of oil would not cause a drastic drop in the price of gasoline.

Speaking on the state of rehabilitation of the refineries, the NNPC boss explained that two of the facilities were on course and would be ready this year.
“We have promised this country that we will restart the fuels plant in Port Harcourt refinery in the first half of 2023 and we are very optimistic that we will do this before the end of the tenure of this President.

Kyari said the national oil company was also very optimistic that before the first half of this year, the Dangote Refinery would start.
“And while that is happening, the issue of imports of petroleum products into our country will be gone forever.
he told a correspondent in Abuja that once we succeed in refining crude in Nigeria, the problem of fuel scarcity will become a thing of the past.

Source: Allnews Nigeria


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