Breaking: Buhari Will Reduce Petrol Pump Price Soon – Osinbajo

Nigeria’s Vice President, Yemi Osinbajo has declared that President Buhari’s led Federal Government is poised to reduce the petrol pump price. According to him, a medium-term plan by the Federal government to up the local capacities of the country’s refineries will culminate in the reduction of the pump price of petroleum products in Nigeria.VP Osinbajo declared that the government is working to ensure that the country’s refineries function, thus reducing importation of refined petroleum products.“We are unbundling the NNPC so that its various components are effective core centres and are able to do their business well,” he told Bloomberg in an interview.He continued: “In the refining area, we know that at the moment, we have quite a few ”“ about two of the refineries are getting back up. Using those refineries, we have seen the inefficiencies already; we’ve seen the cost. “You can refine at 60 percent capacity, but if it costs 20% more than it would cost you elsewhere ”“ perhaps a private refinery ”“ then you know that there’s a problem,” he said. He said the government plans to streamline the role of the NNPC to its main objective of regulating the sector, and ensure a reduction of pump price of petroleum products.“We are going to have private refineries at the site of the old refineries, so they can benefit from the available infrastructure. We think that in the medium term, we would be able to get cheaper pump price; pump price of oil would be cheaper because we would be importing far less refined petroleum products. A lot of that would be produced locally.“Now we have well over 30 modular refineries so we think a lot of modular refineries would come. Many of them, their major concern is feedstock. Are we going to be guaranteed feed stock? We are working on that. Once we are able to deal with that, we would be able to reduce pump price and get the whole business of importation of refined petroleum and the NNPC getting directly involved; we are going to reduce that. The ultimate objective, of course, is to have NNPC as a regulator, playing a more regulatory function as the private sector takes most of the downstream.”