NNPC official hinges establishment of indigenous refineries on passage of PIB

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UYO – Nigerian Petroleum Corporation () has described non-passage Petroleum Industry Bill (PIB) as  a major impediment to investments in building local refineries in country.

Dr Timothy Okon, Group Coordinator Corporate Planning and Director Transformation , made statement in Uyo, while fielding questions newsmen.

“We need to be clear about these things; that the fate domestic refinery is sealed until there is commercial environment for it and this is where  the PIB comes in.

“The PIB will remove the whole subsidy if that bill is eventually passed and accented to,” he said.

According to him, the inability of the Assembly to pass the PIB has delayed the building of new domestic refineries.
He said this had induced the importation of fuel to meet demand.

According to him, building new domestic refineries is not attractive because they cannot thrive under regulation of the price of fuel, especially  Premium Motor Spirit.

Okon said could not fix the price of refined product when there a subsidy regime.

He said building of refineries thrived where there were commercial incentives to encourage investors to new ones.

 Okon said it not practicable to have people invest money in a , while someone controlled the price.

The director stressed the need to create  a favourable environment for investment.

“It is illogical for you to ask an investor to come and invest and then he buys the crude at international price and then somebody else is fixing the price of the product and then you wait till you have money to pay the subsidy.

“This is practical. You have to create an environment for investment. So that is it is only that is in that .

“It costs billions of dollars to put up a refinery and then you up the price whether the price of oil goes higher or not you say this is the price
you are going to pay or sell the ,” he said (NAN)[eap_ad_3]