The continual reoccurrence of the shortage of Premium Motor Spirit, commonly termed petrol, is likely to persist until the government begins refining petroleum products locally and halts entire dependence on imports, oil marketers have declared.
Nigeria imports its PMS and other refined crude oil products, since its refineries in Kaduna, Warri and Port Harcourt are not operational at the present, after being idle for many years.
Although work is now happening at the facilities to renovate them, oil marketers warn that the recurrence of gasoline shortages nationally will come to a full end only when the country begins processing crude domestically.
It was brought to light because the obstacles connected with the importation of refined petroleum products had been on the rise recently, notably after the invasion of Ukraine by Russian soldiers in February last year.
The Nigerian National Petroleum Company Limited – the only supplier of petrol in Nigeria, has been battling with the weight of subsidies on PMS, after the fall of the naira against the United States dollar and other fiscal issues.
Oil marketers indicated that PMS importation was not viable any longer, based on the developments in the industry now.
They stressed that the government must seek to initiate in-country refining of goods to assure product availability and sustainability.
“The heart of the entire problem of petroleum product supply is the absence of refining capacity that we don’t have in the country,” the Deputy National President, of the Independent Petroleum Marketers Association of Nigeria, Zarma Mustapha, told a reporter.
He continued, “If we cannot be able to create adequate refining capacity in the nation, this ongoing on-and-off fuel shortage scenario would not end.”
The IPMAN officer claimed that he was aware that the government, via NNPC, was working on Nigeria’s refineries, but underlined that the pace had been so sluggish.
“I am satisfied with what the NNPC chief and the government is doing currently to resuscitate the Port Harcourt refinery, as the first stage in the rehabilitation of our refineries, while the second phase is going to be the Warri and Kaduna refineries.
“But the problem we have is that the pace at which they are conducting the repairs is too sluggish. They should speed up the contractors to perform their duties promptly. I also wish the Dangote Refinery begins production within the shortest feasible period.
“This will help us lessen the level of dependency on foreign petroleum products. With that, it would alleviate at least 70 per cent of the challenges we are facing with our refined petroleum products distribution.”
Efforts continue to make Nigeria’s refineries operate.
Last week, NNPC and Daewoo Engineering and Construction Nigeria Limited inked a contract worth $740.67m (N341.48bn as per Thursday’s official exchange rate of N461.04/$) for the restoration of Kaduna Refining and Petrochemical Company Limited.
Both sides inked the contract at the Abuja headquarters of NNPC, while the Executive Vice President, Downstream, of the oil national business, Adeyemi Adetunji, said the procedure would take 21 months.
He said the quick-fix policy will see to the repairs and re-streaming of KRPC, as well as ensuring its operation on a sustainable basis at a minimum capacity utilisation of 60 per cent.
He revealed that the contract constituted a milestone in the history of KRPC, given the fact that the previous Turn Around Maintenance on the refinery happened roughly 15 years ago, and that the project was developed after considerable interaction with Daewoo.
Adetunji further noted that the quick-fix method will ensure the shortest path to re-streaming WRPC (Warri Refining and Petrochemical Company) and KRPC for in-country manufacturing of refined petroleum products.
“Restoring WRPC and KRPC to operation would ensure energy security for the nation, decrease dependency on imported petroleum products in light of almost entire dependence on the supply of imported petroleum products and the effect the continuing Russia-Ukraine conflict is having on world supply,” he noted.
He also indicated that the rehabilitation of the Port Harcourt Refining Company had proceeded tremendously.
He added, “The old refinery is presently about 64 per cent done and the facility is anticipated back in service in Q2 2023, while the entire PHRC restoration project currently stands at roughly 59 per cent.
“On the other hand, the WRPC quick-fix project has reached 28 per cent completion and is projected to be re-streamed by the end of this year.”
