Adigun said this during a roundtable discussion with the media in Lagos.
The roundtable has the theme, “The Midstream and Downstream Petroleum Industry in Nigeria: The Roles of Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Ensuring Energy Security”.
Adigun cautioned that expectations for lower prices of refined products from the Dangote Refinery might not be realised.
He explained that the cost of crude oil, whether supplied domestically or in local currency, would still be priced according to international benchmarks.
“As of July 31, 2024, the landing cost of petrol stands at N1,100 per litre, excluding the additional costs of transporting the product to retail outlets,” he noted.
The lower prices from Dangote Refinery was not feasible, given the quality of its products and particularly because crude oil prices are aligned with international market rates.
He further explained that the Nigerian National Petroleum Company Ltd. (NNPCL) would not sell crude below production costs, which align with the international best practices.
Adigun also warned about the ongoing petrol subsidy, which has rendered the market uncompetitive and led to disruptive supply arrangements.
He called for a comprehensive review of fiscal policies to promote competition and establish a robust regulatory environment.
Another industry expert, Taiwo Ogunleye, emphasised the critical role of petroleum in the global economy and the modern energy system.
He highlighted that petroleum was integral to various aspects of daily life, from fueling vehicles and generating electricity to producing numerous everyday products.
Ogunleye explained that the petroleum industry encompasses a range of commercial activities, from the exploration of reserves to the sale of final products to consumers.
He stressed the importance of regulatory frameworks in ensuring efficiency and transparency across the industry’s value chain.
Citing a report by the Oil, Gas, and Mining Policy Division of the World Bank, Ogunleye noted that inadequate regulation and enforcement could hinder fuel supply efficiency. (Source: NAN)
