Presidency Explains Why Petrol Prices Will Not Go Down Even If All Nigeria’s Refineries Are Working

The price of petrol at filling stations will not go down even if all five Nigerian refineries are working at full capacity and producing the most amount of the product.

This is according to the statements made by President Bola Tinubu’s Special Adviser on Media and Publicity, Ajuri Ngelale while he was a guest on Television Continental’s talk show, “Your View”.

More refineries do not equate to cheap fuel.
During the television interview monitored by Reporters, Ngelale dismissed the idea that having more refineries will bring down the price of petrol as a myth that doesn’t happen anywhere in the world

He said:

Even if we have the most refineries producing the most PMS in the world, you will find that the most prolific PMS producers with their refineries…if you go to see what they are charging in their pump, you will find that it’s no different from those countries that don’t have refineries.

The presidential spokesman said that the reason why the price of the pump will not go down irrespective of what your refining capacity is as a country is that nobody spends billions of dollars on building a refinery because of charity or because of corporate social responsibility, but to make money.

So that is why you find that no matter how many oil marketers you have bringing the product into the country, no matter how many refiners you have, producing massive amounts of PMS, the price is dependent on the international benchmark of what the cost of crude oil per barrel is.

When the oil price is high, the price in the pump will go up, when the oil price is p is low, the price will go down. These are market fundamentals that are determined, not in one country, but on the international stage.

Ngelale says there are benefits of having refineries.

Ngelale however stated that having working refineries have big benefits for the country hence the renovation of the Port Harcourt refinery which according to President Tinubu is coming on stream in December 2023.

He also noted the Dangote refinery which has already been launched and will be dishing out products soon and the 200,000 barrel-per-day BUA refinery in Akwa Ibom State.

So, what we are saying is the benefit of having refining in the country is not that you will have cheap fuel. The benefit is that you would have saved the country hundreds of millions of dollars in transportation and logistics costs that we are spending on an annual basis of having to put refined PMS from the international refinery on the water to come to Nigerian shores where we would now offload and send to our distribution stations. You save that money.

He added that Nigeria spends 10 billion a year on foreign exchange paying out to refineries and partners to get the product exchanged from crude to refined PMS. He said all that money would be saved in the central bank as a result of having working local refineries.

He added:

There are benefits, big benefits, but one of them is not the issue of having cheap fuel.

Evil party.....

Where is you news source

Minimum wage should be increased and private sector sanctioned and Nigerians won't keep harmering on this fuel price
Ajuri Ngelale is so cute with no bald head. Awnnn
Acidosis come and see me that was talking down on light skinned men yesterday

I remember saying the same thing on a thread that says the price of petrol will drop by #70 when the refineries are ready and some persons were attacking me

The only way we can reduce the price of petrol is if we reintroduce subsidy. For goodness sake, owners of private refineries buy crude from production (I just hope it won't be in USD) and they have to sell to make money after refining.

APC government of propaganda and lies..... Fixing the refineries will definitely cause a reduction in price over time because the government will have better insight on how much petrol Nigerians consume and can properly subsidy the cost of refining if the local refineries are working. You see commodities like petrol and diesel are key to the economy because it has a direct impact on Nigeria's manufacturing and production sector, it has to be subsidized to ensure stability in critical sectors of the economy. Fixing the existing refineries or building new ones through PPP (Public Private Partnership) will also encourage competition which will drive the price of petrol down overtime.....

If you don't sell it cheaper, please go and import crude oil. You can't be drawing free crude oil from the ground and sell it at exorbitant prices within Nigeria simply because the price of the product is high in other countries or international level. Here we'll set our own price otherwise we'll shutdown the refinery and continue to import PMS as usual. Which kind of criminals do we have as leaders? The refineries you're talking about was built with public money except that of Dangote's, which it was still public money that was loaned to him. As for the government owned refineries, my friend, you must sell cheaper otherwise expect a more Chaotic society. What is the living standards including minimum wage compared to those countries selling PMS at high price? See, come, no find my trouble o!

Dannynaijatunes:
Presidency Explains Why Petrol Prices Will Not Go Down Even If All Nigeria’s Refineries Are Working

The price of petrol at filling stations will not go down even if all five Nigerian refineries are working at full capacity and producing the most amount of the product.

This is according to the statements made by President Bola Tinubu’s Special Adviser on Media and Publicity, Ajuri Ngelale while he was a guest on Television Continental’s talk show, “Your View”.

More refineries do not equate to cheap fuel.
During the television interview monitored by Reporters, Ngelale dismissed the idea that having more refineries will bring down the price of petrol as a myth that doesn’t happen anywhere in the world

He said:

Even if we have the most refineries producing the most PMS in the world, you will find that the most prolific PMS producers with their refineries…if you go to see what they are charging in their pump, you will find that it’s no different from those countries that don’t have refineries.

The presidential spokesman said that the reason why the price of the pump will not go down irrespective of what your refining capacity is as a country is that nobody spends billions of dollars on building a refinery because of charity or because of corporate social responsibility, but to make money.

So that is why you find that no matter how many oil marketers you have bringing the product into the country, no matter how many refiners you have, producing massive amounts of PMS, the price is dependent on the international benchmark of what the cost of crude oil per barrel is.

When the oil price is high, the price in the pump will go up, when the oil price is p is low, the price will go down. These are market fundamentals that are determined, not in one country, but on the international stage.

Ngelale says there are benefits of having refineries.

Ngelale however stated that having working refineries have big benefits for the country hence the renovation of the Port Harcourt refinery which according to President Tinubu is coming on stream in December 2023.

He also noted the Dangote refinery which has already been launched and will be dishing out products soon and the 200,000 barrel-per-day BUA refinery in Akwa Ibom State.

So, what we are saying is the benefit of having refining in the country is not that you will have cheap fuel. The benefit is that you would have saved the country hundreds of millions of dollars in transportation and logistics costs that we are spending on an annual basis of having to put refined PMS from the international refinery on the water to come to Nigerian shores where we would now offload and send to our distribution stations. You save that money.

He added that Nigeria spends 10 billion a year on foreign exchange paying out to refineries and partners to get the product exchanged from crude to refined PMS. He said all that money would be saved in the central bank as a result of having working local refineries.

He added:

There are benefits, big benefits, but one of them is not the issue of having cheap fuel.

IconicR:
Minimum wage should be increased and private sector sanctioned and Nigerians won't keep harmering on this fuel price
Ajuri Ngelale is so cute with no bald head. Awnnn
Acidosis come and see me that was talking down on light skinned men yesterday

Lol. This woman. Shey you will not rest?