Stakeholders demand more modular refineries to sustain petrol price reduction

The Conscience of the Nation, a socio-economic pressure group, says the recent drop in the price of petrol has brought “much-needed” relief to Nigerians.

The price of petrol dropped from N950 in January to N825 in February.

The group attributed the fuel price reduction to the policies of President Bola Tinubu and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Speaking at a press conference on Monday, Gideon Unazi, coordinator of the group, said the drop in fuel price has lowered transportation costs, making food and essential goods more affordable.

Unazi said for a sustainable and steady reduction in petrol price, more investment is needed in the oil sector, including establishing more modular refineries.

“In January, the NUPRC outlined a five-point agenda aimed at increasing oil production in 2025,” the statement reads.

“Key initiatives include boosting production by one million barrels, enhancing transparency and accuracy in hydrocarbon measurement, digitalising upstream regulatory activities, optimizing unit costs per barrel, and conducting licensing bid rounds to revitalize non-performing assets.

“The importance of having more local refineries like Dangote cannot be overstated. With the Dangote refinery, Nigeria is poised to emerge as one of the largest crude oil refining hubs by 2025.

“The refinery’s capacity to produce Euro-V quality gasoline and diesel, in addition to jet fuel and polypropylene, is expected to eliminate Nigeria’s petroleum import requirement, thereby bolstering the country’s current account position and foreign-exchange reserves.

“The establishment of more local refineries will not only reduce Nigeria’s reliance on imported fuel but also create jobs and stimulate economic growth.”

He noted that modular refineries, due to their scalability and lower capital requirements, offer a viable solution to Nigeria’s refining challenges.

Unazi added that their proximity to crude oil sources reduces logistical costs, enhances local job creation, and ensures a steady supply of refined products to the domestic market.