Oil sector marketers have made references to a potential fuel price drop when the Warri refinery’s operations began.
On Monday, December 30, the refinery began operating at 60 percent capacity following almost ten years of inactivity, according to a statement from the Nigerian National Petroleum Company Limited (NNPCL).
However, in response to the announcement, the Federal Government and the NNPCL were praised for the accomplishment by the Independent Marketers Association of Nigeria (IPMAN) and the Major Energy Marketers’ Association of Nigeria (MEMAN).
The marketers stated that competition and supply diversification would be essential to the Warri refinery’s operations.
Additionally, they said that the facility’s renovation will result in lower petroleum product pricing.
According to MEMAN’s executive secretary, Clem Isong, the new refinery is the quickest way to go to the northern region of the nation.
He stated, “We are diversifying our supply and the market is becoming more competitive.”
Isong stated, “There are a lot of factors that affect price, and competition is always good. You can always get your product at the best price.”
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According to IPMAN’s public relations officer, Olanrewaju Okanlawon, a fall in product prices would result from an overall surplus of supply.
If there is an excess supply, the price will continue to decline, he stated.
The free market we currently operate on is based on supply and demand. It will continue to lower the cost. Lagos’ congestion will be reduced,” Okanlawon stated.
