Nigerians have been reassured by Senate Leader Opeyemi Bamidele that the nation’s gasoline crisis would soon be history. During a Friday discussion with reporters outside the Oil Technology Conference (OTC) in Houston, Texas, Bamidele provided this guarantee.
He claims that the Congress is exerting great effort to find a solution to the problem of gasoline scarcity and long lines at gas stations. According to him, there are intentions to include further private sector companies in the development of new refineries.
The Senate is attempting to make sure that more companies in the private sector are granted permission to own and run refineries. This is to help with the smaller ones that are emerging around the nation.
“In addition to licensing new refinery operators, the Federal Government and Senate are working to ensure that the existing refineries are turned around with repairs and replacement of parts carried out where necessary.
Bamidele said the Senate had gotten assurance from the Nigerian National Petroleum Company Ltd., (NNPC Ltd.) that two of its refineries in Warri and Port Harcourt would come on stream before the end of the year.
He also noted that the commitment to licensing new refinery operators and revitalising existing refineries remained vital for increasing domestic oil production. Opeyemi maintained that the focus was to ensure that Nugeria meets its OPEC production quota.
He explained that achieving such milestones would provide more revenue for the government and halt lack and borrowings. By enhancing local refinery capacity, the Senator said that the country could reduce its dependence on fuel imports, leading to a potential decrease in petrol prices.
He explained that what drives pricing is the ability to meet demand in the face of every product, finding its level and place in a free market. Also speaking, the Chairman, Senate Committee of Downstream, Sen. Ifeanyi Ubah, said the last Turn Around Maintenance (TAM) that happened at the refineries was about 15 years ago, which led to the comatose state of the facility.
Ubah said that the non-deregulation of the downstream sector had put undue pressure on NNPC Ltd., as the entire industry depends on company for its petroleum needs. He pointed out that no country could meet its energy needs by having a single entity; importing its petroleum product needs.
However, to be self-sufficient, Ubah urged the government to create a cluster of five to eight modular refineries within the riverine communities.
