Support more local refineries to boost refining capacity – LCCI
LCCI has urged the federal government to support the development of more local refineries process crude oil for local consumption and potential export across Africa.
The Director General of LCCI, Dr Chinyere Almona who made this statement while reacting on the hike in fuel prices said that sustainable approach through intervention will bring stability in the system.
She, however, said that the operation of the Dangote Refinery, which now produces fuel and diesel for sale, offers a glimmer of hope. She said that this game-changing intervention could restore some stability to the oil and gas sector, which has been grappling with significant distortions this year.
She said” supporting the development of additional local refineries process our crude for local consumption and potential export across Africa is the way forward. “
Stating that this long-term strategy is crucial for the stability and growth of our economy.
Speaking further, she said “As an immediate intervention, it would be beneficial for the Port Harcourt Refinery to commence operations alongside production from the Dangote Refinery. “Given the current challenges with importing refined fuel, relying on local production may be the most viable option at this time.
“We recommend sustaining local supplies, with the expectation that demand will eventually align with supply, leading to equilibrium pricing across various sources.”
The Chamber also cautioned that the current hike on fuel price would likely trigger widespread price increases, potentially reversing the recent easing in inflation seen in July and leading to another surge in inflation rates, adding that the impact of the hike in petrol price on business would be severe.
She said increase in fuel prices would affect supply and logistics, power generation, transportation, and factory operations, adding that the cost of doing business will skyrocket, prices of goods will rise, and some firms may shut down due to low demand in the face of weakening consumer purchasing power.
She said that the development may be followed by job losses in some companies.
