By John Ikani
Nigerians are unlikely to see a reduction in the pump price of petrol despite the country’s refineries starting local production, the Nigerian National Petroleum Company Limited (NNPCL) has said.
The NNPCL’s Group Chief Executive Officer, Mele Kyari, who disclosed this during an interview on Arise television in Abuja on Thursday, said that the cost of production would still be factored in, even if the product was produced locally.
Kyari confirmed that the Dangote Refinery, which was inaugurated on May 22, 2023, by former President Muhammadu Buhari, would start pushing out products by the end of July and early August.
He also stated that the Port Harcourt Refinery would be delivered by the end of the year, adding that the facility was expected to further boost local production of petrol.
“There is a notion that if the product is processed locally, prices will reduce. Let me make it clear that it is not going to change anything. The refineries will still input the cost of production and other things and it will be sold at the current price,” Kyari stated.
Kyari’s comments have been met with disappointment by many Nigerians, who had hoped that the local production of petrol would lead to a reduction in prices.
It remains to be seen how the local production of petrol will impact the pump price of the commodity in Nigeria.
However, it is clear that the cost of petrol is not expected to reduce anytime soon.
In addition to the cost of production, other factors that could affect the price of petrol include the global oil market, the exchange rate, and government policies.
