Following the start of operations at the Warri refinery, oil industry marketers have alluded to a potential drop in fuel prices.
After almost ten years of inactivity, the refinery began operating at 60 percent capacity on Monday, December 30, according to a statement from the Nigerian National Petroleum Company Limited (NNPCL).
The Independent Marketers Association of Nigeria (IPMAN) and the Major Energy Marketers’ Association of Nigeria (MEMAN) responded to the news by praising the Federal Government and the NNPCL for the accomplishment.
The marketers stated that the Warri refinery’s operations will rely on supplier diversification and competitiveness.
They went on to say that lower petroleum product prices will result from the facility’s renovation.
The new refinery is the quickest way to go to the northern region of the country, according to Clem Isong, MEMAN’s executive secretary.
“We are diversifying our supply and the market is becoming more competitive,” he stated.
“There are a lot of factors that affect price, and you can always get your product at the best price because competition is always good,” Isong stated.
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According to Olanrewaju Okanlawon, IPMAN’s public relations officer, a fall in product prices would result from an overall surplus of supply.
“If there is excess supply, it will continue to drive down the price,” he said.
“Now that we have a free market, supply and demand govern it. The price reduction will continue. Lagos would become less congested, Okanlawon stated.