Queue at the filing station The President, Petroleum Products Retailers Owners of Nigeria( PETROAN), Dr Billy Gills Harry, says the reduction of the product, by the Nigerian National Petroleum Company Limited( NNPCL) is good for the nation'struggling economy, as it would help in soften the difficult situations posed by the sharp rise in the price of petroleum products. While reacting to the issue through a statement issued and signed to the NEWSMIRROR yesterday, Harry said that the slight reversal of the price by NNPCL shows that the government is committed to the alleviation of the problems of the masses. According to him, the reduction in the price per litre of Petrol Motoring Spirit( PMS) from N1,020 per litre to N899 per litre is good, adding that the country will soon get over its problem, if the readjustment of the economy continues. Also, PETROAN's Public Relation Officer, Dr Joseph Obele said that Dangote Petroleum Refinery had earlier started the r...
ByFavour and Akinola Ajibade
Dangote Refinery is a privately driven entity, established purely as business concern, not a substitute for fuel subsidy, analysts have said.
The Refinery, which boast of 650,000 capacity will be innugurated next week in order to deepen distribution of petroleum products, which its scarcity has lor years hampered the growth of Nigerian economy.
The project will be commission next week, precisely May 22, 2023.
The project will enable Nigeria to save $10 billion in foreign exchange ( FX) and generate another $10 billion in exports when it begins operation.
According to the analysts who were drawn from across oil and gas and other sectors of the economy, Dangote Refinery project will be profit -driven, as the company will be buying crude oil at the Market rate, process it the way a typical plant import fuel and resell it a non-subsidised rate.
" Nigerians should not expect that Dangote would sell fuel to them at a subsidies’ rate. This will certainly not happen.However, if the government wants to continue to sell fuel to Nigerians at subsidized rate, it has to buy from Dangote at market price and sell to Nigerians at subsidized rates" they added jointly".
On gains to Nigeria, analysts further said that the country will be saved the agony of waiting fuel , which would spend almost 60 days turnaround time.
" Marketer will just walk around to Lekki processing zone and get fuel from there, this is the advantage. So products supply would be guaranteed and it will be in the neighbourhood.
Again, the transportation cost for fuel would be reduced. Also, it will help Nigeria to conserve foreign exchange. The issue of mother and vessel and perhaps port charges which have been sources of concern for marketers would have been greatly minimized.
Nigeria would save up to US$10bn in foreign exchange (FX) and generate another US$10bn in exports when the facility begins operation.
Recall that Dangote Refinery Plant costs $19billion, which is loans taken from banks and other financial institutions and so the promoter of the refinery must pay back the loans.
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