Yemisi Izuora
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Nigerian National Petroleum Company Limited (NNPC) to ensure the availability of crude oil to local refineries, as this is crucial for the success of the 15 per cent duty on imported fuels policy by the Federal Government.
Dr. Billy Harry, National President of PETROAN, speaking during a courtesy visit to Hon. Dr. Chinyere Igwe, the new Pro-Chancellor and Chairman of the Governing Council of Ignatius Ajuru University of Education, PH, commended President Bola Tinubu for approving a 15 per cent import duty on petrol and diesel.
This policy, he noted aims to protect domestic refineries, stabilize the downstream oil market, and promote energy security.
Billy-Harry highlighted the benefits of this approval, including increased local refining capacity, improved price stability, and enhanced energy security. He noted that this policy will boost local refining, promote economic growth, create more job opportunities, and create a level playing field for domestic refineries.
The benefits of this policy include increased local refining capacity, reduced dependence on imported fuel, improved price stability, enhanced energy security, boost to local economy, benefits to foreign reserves, benefits to Naira gaining strength, and attracting investors. The potential disadvantages include potential price increase, loss of jobs on the side of importing firms, and short-term challenges.
He emphasized that the benefits of this policy will outweigh the potential disadvantages.
However, he called on regulatory agencies such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to be on red alert against monopoly, warning that if local refineries are not properly regulated, it could lead to a monopoly that might harm the market.
He noted that importers of petroleum products, which were a price check mechanism against profiteering, will be out of business if not properly managed. Instead, he urged importers of petroleum products to look inwards towards patronizing local refineries.
The new policy has also prompted NNPC to seek private partners in managing the four nation-owned refineries.
According to Bayo Ojulari, NNPC’s Group Chief Executive Officer, the company is looking for technical equity partners to help revive its long-dormant refineries, which have yet to resume operations despite years of heavy investment. This move is seen as crucial to Nigeria’s long-term energy security and could potentially transform the country from a fuel importer to a net exporter.
Dr. Billy Harry also calls on NNPC to complete the partnership agreement very soon and start production at Nigeria’s refineries before December to avert any form of fuel scarcity or price hike during the Yuletide season. This timely action will help ensure a stable supply of petroleum products and support the country’s economic growt.
The PETROAN pledged to support Ignatius Ajuru University of Education in bringing industry experience to the classroom through pro bono services.
The association is willing to collaborate with the university to develop new programs that suit Petroleum Retailing, Marketing, and Energy Management.
PETROAN also declared its willingness to accept all Ignatius Ajuru students for IT industrial training in petroleum marketing-related courses and welcomes them for excursions to stations, depots, and refineries to gain vast industry knowledge.