The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), in collaboration with its partners, plans to establish a refinery with an initial capacity of 50,000 barrels per day (bpd).
According to PETROAN President Billy Gillis-Harry, the agreement and Memorandum of Understanding (MoU) to commence the refinery’s construction will be signed in the coming weeks. He noted that the deregulation of the downstream oil and gas sector is creating new opportunities for investments.
Gillis-Harry reiterated PETROAN’s support for full deregulation, emphasizing that redirecting subsidy payments for Premium Motor Spirit (PMS) towards critical sectors like health, education, and transportation would drive economic development.
Discussing energy sector reforms for the upcoming year, Gillis-Harry said PETROAN has consistently advocated for reliable energy supply to promote economic growth. He argued that subsidy payments are unsustainable and emphasized that freeing the market will attract investments and ensure consistent product availability.
“As advocates for product affordability and availability, we are partnering to establish a modular refinery to enhance local production and supply,” he added.
On measures to lower petrol prices, Gillis-Harry highlighted the high borrowing rates from commercial banks, ranging between 28% and 35%, which contribute to inflated product costs. He urged the government to establish the Nigeria Energy Bank (NEB), modeled after the African Energy Bank (AEB), to provide marketers with access to single-digit interest loans for purchasing petroleum products.
Additionally, he suggested channeling subsidy funds into developing rail infrastructure to facilitate cost-effective and sustainable transportation of petroleum products to depots nationwide, enabling marketers to load products efficiently and at reduced costs.
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