Local refining won’t reduce pump price of fuel much, but… — PENGASSAN



By Victor Ahiuma-Young

In this chat, President of Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, Festus Osifo, speaks on local refining of crude, refineries, pipelines vandalism, among others.

Local refiningFor us, one of the things that we feel that government must do is to get the refineries to work. But I must warn that our refineries working is not a panacea for us to buy a very cheap Premium Motor Spirit, PMS (Petrol). It is not. We need to understand that. If our refineries are working today, crude oil is going to be sold to our refineries at international market price. Let us assume that Total and ExonMobil have their terminals close to one refinery, ExonMobil and Total are going to sell crude to such refinery at international market price. If they do that, it means if you refine these products, you are going to have the price similar to what is obtainable abroad. But the only difference is the cost of transportation. If you refine the…

Source: Vanguard Newspaper