Petrol will Never be Cheaper with More Refineries

Ajuri Ngelale, President Bola Tinubu’s Special Adviser on Media and Publicity, has cast doubt on the notion that an increase in the number of operational Nigerian refineries would lead to a decrease in the price of petrol.

During his appearance on Television Continental’s talk show, Ngelale challenged the widely-held belief, labeling it as a myth that lacks substantiation.

Ngelale’s statements come amidst discussions about the fluctuating prices of petrol and the potential benefits of increased refinery capacity in Nigeria.

He asserted that merely having more refineries wouldn’t necessarily translate to cheaper petrol prices, citing that global crude oil prices, dictated by organizations such as OPEC (Organization of the Petroleum Exporting Countries), have a more significant impact on the cost of petrol.

• Port Harcourt Refinery Resumes Operations – FG

In the interview monitored by Legit.ng, Ngelale clarified that the price of petrol isn’t solely influenced by the number of refineries in operation within a country. He further emphasized that crude oil prices, determined by international factors and organizations, hold more weight in shaping petrol prices.

This stance challenges the conventional belief that an increase in domestic refining capacity could alleviate the cost burden on consumers at the pump. As the debate on Nigeria’s fuel pricing and energy security continues, Ngelale’s statements offer a perspective that diverges from the commonly held belief that more functional refineries would automatically lead to more affordable petrol.