Modular Refineries investors Urge Nigerian Govt to Cut Fees on Diesel to Curb Rising Costs

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In response to the surging prices of diesel, commonly known as Automotive Gas Oil (AGO), operators of modular refineries in Nigeria have called upon the Federal Government to eliminate various fees associated with the locally refined product. The continuous increase in diesel prices has had a detrimental impact on multiple sectors, particularly in the downstream oil industry, where it has disrupted the operations of many filling stations.

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Oil marketers have repeatedly cited the elevated cost of diesel as a challenge, making it hard to transport products from tank farms in the South to filling stations in the North without raising the prices of the transported items. In a bid to alleviate the cost of diesel, particularly that produced by modular refineries within the country, the operators of these facilities, under the Crude Oil Refinery-Owners Association of Nigeria (CORAN), emphasized the need for the government to remove the numerous fees imposed on the commodity.

During a courtesy visit to the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, in Abuja, CORAN made this request. The President of CORAN, Momoh Oyarekhua, highlighted that the accumulated fees currently amount to approximately N9.80 for every liter of diesel or kerosene sold in the market, ultimately contributing to higher market prices.

Meanwhile, in the Federal Capital Territory and neighboring Nasarawa and Niger states, long queues for Premium Motor Spirit (PMS), commonly known as petrol, worsened as numerous independent retail stations were forced to close due to a lack of products for dispensing. This further underlines the challenges facing the oil industry in Nigeria.

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