The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, has said that at the moment, importing Premium Motor Spirit (PMS), also known as petrol, is cheaper than producing the product in the country’s refineries, Vanguard reports.
Addressing newsmen in Abuja, Kachikwu disclosed that until the upgrade and total refurbishment of the refineries are concluded, as well as ensuring that the pipelines are fixed, it would be uneconomic and very expensive to refine PMS locally. He maintained that local refining of PMS would make much more economic sense if all the refineries undergo full set of repairs and Turn-Around Maintenance (TAM), and when new refineries are set up in the country through co-locative initiative.
Kachikwu further noted that even if the current set of refineries were working on a 100 per cent basis, they would only be able to account for 20 million litres of PMS per day, about 50 per cent of the country’s total consumption. This means that the country would still resort to importation to meet up with the shortfall.