FG Gives Condition for Petrol Price to Continue Falling
- The Minister of State Petroleum Resources (Oil) said domestic refineries will help to bring down the price of refined gasoline
- He pointed out that reducing dependency on imported refined petrol can be achieved by enhancing domestic refining capabilities
- He also explained that the removal of subsidies was a deliberate action to increase Nigeria's refinement capabilities
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Heineken Lokpobiri, the Minister of State Petroleum Resources (Oil) has said indigenous refineries will contribute to lowering the cost of refined petroleum products and lessening the nation's reliance on foreign fuel.
Source: Getty Images
Lokpobiri emphasized the significance of Nigeria's downstream petroleum value chain and the Federal Government's dedication to maximizing the nation's refining capabilities.
He said these while welcoming Mrs. Joyce Akabogu, the CEO of OTL Downstream Development in Africa Ltd/Gte, who was leading her team on a courtesy call at the petroleum ministry.
The downstream sector is crucial to the entire petroleum value chain because of its substantial revenue potential and significance to the national economy, even though many operators prefer to undervalue it, according to a statement by OTL.
He stated that “while the sale from a barrel of crude oil is estimated at around $70, income accruable from derivatives of crude oil refining could be three times more.”
He spoke further,
“Realising its value to the economy, the ministry is focused on enhancing in-country refining capacity, reflected in the recent issuance of licenses for the development of additional refineries and ongoing support for the local refining industry.”
The oil minister emphasized that the administration of President Bola Tinubu is positive that increasing domestic refining capabilities will help lessen reliance on imported refined petroleum products and guarantee a competitive market for the good of all Nigerians, which will result in a sustained decline in petroleum product prices.
He went on to explain that the elimination of subsidies was a calculated move to improve Nigeria's capacity for refinement and guarantee that the nation eventually becomes a net exporter of petroleum products.
The visit was intended to engage the Ministry of Petroleum Resources in relation to the upcoming OTL Africa Downstream Energy Week, which aims to build relationships within the downstream energy value chain and provide a pan-African platform for collaboration and growth, according to Akabogu, CEO of OTL Downstream Development in Africa.
In response, Lokpobiri stated that the ministry supports OTL Africa Downstream Energy Week, pointing out that, in contrast to other programs that have a more comprehensive approach, it is a targeted effort devoted to the downstream sector.
Given its crucial role in the global energy industry, he confirmed that Nigeria is in a good position to host the event, The Punch reported.
Source: UGC
He praised the OTL Africa Downstream Energy Week secretariat for starting planning months in advance, a proactive move that he said shows the event's potential to support industry sustainability and growth.
Along with ministry agencies, the minister confirmed that he will be attending the 2025 event.
Petrol landing cost drops below N800 per litre
Legit.ng reported that fuel prices at filling stations are now expected to reduce as the cost of importing petrol drops significantly.
The change is driven by a sharp decline in global crude prices, as Brent crude has fallen to $69 per barrel.
Punch reports that major oil marketers are working on offering a lower ex-depot price against the gantry loading cost of N825 per litre set by Dangote Petroleum Refinery.
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Source: Legit.ng
