The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has revealed plans to launch a new modular refinery that can produce 50,000 barrels per day.

PETROAN said it would partner with certain stakeholders and key players to bring this project to fruition.

According to Billy Gillis-Harry, the PETROAN President, construction of the facility will commence once the agreement and Memorandum of Understanding (MoU) are signed in the coming weeks.

Deregulation ushering in fresh investments

Gillis-Harry stated that this new refinery is one of the initiatives made possible by the deregulation of the downstream sector of the Nigeran oil and gas industry.

In a chat with LEADERSHIP, Gillis-Harry stated that the deregulation of the industry has paved the way for fresh investments in the sector.

He also observed that the deregulation of the downstream sector and removal of fuel subsidies have now freed up government funds to be channeled into critical areas like health, education, and infrastructure.

Gillis-Harry noted that the subsidy payment was not sustainable, but opening the market up to attract investments was more sustainable and key to achieving sufficient product supply and drop in prices.

He added that PETROAN had always advocated boosting economic growth through optimum performance of the energy sector.

Single-digit interest rates for marketers

On the issue of fuel prices, Gillis-Harry called on the government to establish the Nigeria Energy Bank (NEB) as a local subsidiary of the African Energy Bank (AEB), to make funds accessible to Petroleum marketers at single-digit interest rates.

He argued that if the marketers could access funds at better rates, the fuel prices would crash even further.

He complained that commercial banks offered interest rates ranging from 28 to 35%, which trickled down to the fuel prices.

He added that with enhanced rail transportation to move petroleum products, the prices could drop even further.