Fuel crisis will be resolved soon, Senate leader assures Nigerians

Mr Bamidele said the legislature was working tirelessly to resolve fuel scarcity and frequent filling station queues.

News Agency of Nigeria • May 11, 2024

Senator Opeyemi Bamidele

Senate Leader Opeyemi Bamidele has assured Nigerians that the fuel crisis experienced in the country will soon be a thing of the past.

Mr Bamidele gave this assurance in an interview with journalists on the sidelines of the Oil Technology Conference (OTC) in Houston, Texas, on Friday.

According to him, the legislature is working tirelessly to resolve fuel scarcity and frequent filling station queues.

“The Senate is working to ensure that more private-sector players are licenced to own and operate refineries to support other smaller ones springing up in several parts of the country.

“In addition to licencing new refinery operators, the federal government and the Senate are working to ensure that the existing refineries are turned around with repairs and replacement of parts carried out where necessary,” said Mr Bamidele.

Mr 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 licencing new refinery operators and revitalising existing refineries remained vital for increasing domestic oil production.

Mr Opeyemi maintained that the focus was to ensure that Nigeria meets its OPEC production quota.

He explained that achieving such milestones would provide more revenue for the government and halt the lack of borrowing.

The senator said that by enhancing local refinery capacity, the country could reduce its dependence on fuel imports, potentially decreasing petrol prices.

He explained that pricing drives the ability to meet demand for every product by finding its level and place in a free market.

Also speaking, the chairman of the Senate Committee on Downstream, Ifeanyi Ubah, said the last turn-around maintenance (TAM) at the refineries was about 15 years ago, which led to the facility’s comatose state.

Mr Ubah said the non-deregulation of the downstream sector had put undue pressure on NNPC Ltd., as the entire industry depends on the company for its petroleum needs.

He pointed out that no country could meet its energy needs by having a single entity import its petroleum products.

However, Mr Ubah urged the government to create a cluster of five to eight modular refineries within the riverine communities to be self-sufficient.

(NAN)

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