Copyright newtelegraphng
…Says policy’ll increase local refining capacity, enhance energy security The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr Billy Gillis-Harry, has called on regulatory agencies such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to be on red alert against monopoly, over the 15% import duty on imported petroleum products approved by President Bola Tinubu. He also warned 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. Furthermore, PETROAN calls 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 policy. He spoke during a courtesy visit to the new Pro-Chancellor and Chairman of the Governing Council of Ignatius Ajuru University of Education, according to a statement on Friday by National Public Relations Officer, PETROAN, Dr. Joseph Obele. He opined that the new policy prompted NNPC Ltd to seek private partners in managing the four nation-owned refineries. He recalled the Group Chief Executive Officer, NNPC Ltd, Bayo Ojulari, as having said 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. Billy Harry said the 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. He called on NNPC Ltd 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. According to him, this timely action will help ensure a stable supply of petroleum products and support the country’s economic growth. The PETROAN boss, however, said the 15% import duty on imported petroleum products will increase local refining capacity, improved price stability, and enhance energy security. He added that the policy will boost local refining, promote economic growth, create more job opportunities, and create a level playing field for domestic refineries. Gillis-Harry, commended Tinubu for approving a 15% import duty on petrol and diesel. He opined that the policy aims to protect domestic refineries, stabilize the downstream oil market, and promote energy security. He said: “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 pledged PETROAN’s support to Ignatius Ajuru University of Education in bringing industry experience to the classroom through pro bono services. He stated that the association was willing to collaborate with the university to develop new programs that suit Petroleum Retailing, Marketing, and Energy Management. He also declared PETROAN’s willingness to accept all Ignatius Ajuru students for IT industrial training in petroleum marketing-related courses and welcome them for excursions to stations, depots, and refineries to gain vast industry knowledge.
