No going back on deregulation of downstream
...as FG says price of crude oil will always determine price of petrol
The Federal Government appears not to be ready to back-down on the issue of price of Premium Motor Spirit or petrol as it maintains its position that petrol price will always be determined by the price of crude oil at the international market.
Sylva Timipre, minister of state for Petroleum Resources, reiterated the resolve of the government not to subsidise the price of petrol anymore during the commissioning of Walter Smith 5000barrel modular Refinery at Ibigwe in Imo State.
He said that market forces would be the major determinant of the prices of PMS in the country.
The minister explained that the money made from removing subsidy has been deployed to other sectors of the economy.
He said with the commissioning of the refinery, Nigeria would begin to witness a gradual reduction in the importation of petrol into the country.
“This would make available more petrol in the Nigerian market. The downstream has experienced significant challenges but by allowing market forces to come to play the sector would be sanitise itself, allow investors to come in and help to transform it.”
According to him, with large scale and small scale processing plant to operate side by side, the country would eventually meet it demand locally and possibly be a net exporter in future.
In his address, president Muhammadu Buhari said the establishment of Waltersmith Refinery is one of the four key elements in his government ‘s refinery road map for the country which is aimed at eliminating fuel importation into the country.
He said the government plans are to build new refineries and refurbish the existing ones so that the country can be a net exporter of Petroleum products.
He directed that government agencies and ministry of petroleum Resource to give all the necessary support Waltersmith to successfully execute it expansion programs that would enable the company attain 50,000 barrels per day in the next two years.
Mele Kyari, group managing director of the Nigeria National Petroleum Corporation NNPC in his own remark at the occasion pledged to always collaborate with Waltersmith to make a success of her project.
He said the corporation is working towards ensuring that there is efficient and effective distribution networks and markets for Petroleum products produced in the country.