No viable refining, if we don’t deregulate, remove fuel subsidy—OVH Energy chief
The Chief Executive Officer, OVH Energy Marketing, Mr. Huub Stokman, has argued that the current fuel access and management system in Nigeria remains counterproductive until the needful is done to the downstream petroleum sector of the economy.
He said what have been delaying private sector investors in setting up refineries or investing in the four moribund refineries is the fear of policy summersaults and huge financial obligations involved in setting up refineries without a strong assurance from the government.
Speaking during a panel session on the theme: ‘Imperatives of local crude oil refining,’ he stressed the need for the review policies concerning importing refined petroleum products in Nigeria hence local refineries are below capacity production.
According to him, “There is no viable refining, if we do not talk about deregulation and removing fuel subsidy. As one of the biggest economies in Africa, we can justify the reason to have a viable refining industry. There is need to invest in refinery infrastructure in order to have the capacity to produce clean fuels.”
Though participants at the summit evaluated current institutional construct and policies in Nigeria and trends in other climes regarding the use of conventional and modular refineries and suggested responsible models for coordinating and regulating commercial activities, Stokman argued that new narrative is currently needed to tame the surging loss of exchange by both government and private sector operators.
He recalled that “There have been attempts to regulate the industry in a bid to ensure sustainability and innovative growth. However, there is an urgent need to develop Nigeria’s capacity to refine crude oil locally. This will bring about great financial and socio-economic impact not just on the petroleum industry but also on other sectors of the economy.
“This is even more critical now taking into consideration the costs of crude prices in the global marketplace, which means increase in the amount spent on importation of petroleum products,” OVH Energy Group boss added.
