NewStats: 3,263,132 , 8,179,212 topics. Date: Wednesday, 04 June 2025 at 07:36 PM 671s4v

The Nigerian National Petroleum Company Limited on Wednesday explained that one of the key reasons modular refineries in Nigeria were not producing Motor Spirit, popularly called petrol, was because of the regulated pump price of PMS by government.

A modular refinery is a simplified refinery requiring significantly less capital investment than traditional full-scale refineries. They are crude oil processing facilities with capacities of up to 30,000 barrels per day.

Nigeria has a number of modular refineries in Edo, Delta, Imo and other states, while plans are on to increase the number through private sector investments.

OPEC raises Nigeria’s oil production quota as Brent hits $111/barrel

This came as data released on Wednesday by the Organisation of Petroleum Exporting Countries indicated that OPEC had raised Nigeria’s oil production quota from the 1.718 million barrels per day target in March to 1.735 million bpd in April 2022.

Also, it was observed that the cost of Brent, the crude against which Nigeria’s oil is priced, appreciated on Wednesday, rising to $111.03/barrel as at 6.54pm Nigerian time, amidst the increase in OPEC oil production quota for Nigeria.

The organisation raised the country’s crude oil production quota following the conclusion of the 26th OPEC and non-OPEC Ministerial Meeting, held via videoconference on March 2, 2022.

Nigeria had been missing its oil production quota lately. Early last month, OPEC increased Nigeria’s crude oil production target for the month of March despite the fact that the country had been missing its approved monthly output targets.

OPEC raised Nigeria’s oil production target for March 2022 to 1.718 million barrels per day, indicating a marginal increase from the 1.701 million barrels per day target that was approved for Nigeria in February.

The PUNCH had exclusively reported that Nigeria missed its crude oil output target for January 2022, pumping 1.46 million barrels per day against a target of 1.683 million bpd as approved by OPEC.

Speaking on the reasons why modular refineries were not producing petrol, during a plenary session at the ongoing Nigeria International Energy Summit 2022 in Abuja, the Group Executive Director, Refining, NNPC, Mustapha Yakubu, said it was due to fuel pump price regulation.

He said, “Some modular refineries should take up to 50,000 barrels per day, but because of financing you can start with 10,000 barrels and then scale up gradually to 50,000 barrels.

“What do you need to do to produce PMS? It is to put additional investment that will put in the cracker required to produce the PMS. But in this period why they (modular refineries) cannot produce PMS is because we are under full regulation.

“So to me, if they produce PMS today, at what cost are they going to produce it and at what cost are they going to sell under this regulated environment?”

Participants at the session therefore urged the government to implement the Petroleum Industry Act in full and ensure the complete deregulation of the downstream oil sector.

https://punchng.com/modular-refineries-cant-refine-fuel-due-to-price-regulation-nnpc/

What the NNPC boss is saying is simple.

Modular refineries can only work when government allows petrol to be sold at market price, otherwise they won't make enough of a profit to function well otherwise.

Ok

Why

Hmmmmm fto

I knew it!!
That explains the source of the sudden smoke in Port Harcourt. But people are not thinking.

story..... modular refineries can't refine crude oil because it would affect dangotes business.


We can divert those subsidies to modular refineries.

backbencher:


On the other hand, we can remove subsidy, and make it profitable for modular refineries to operate.

A modular refinery needs to make a profit to operate, and government setting the price and paying subsidies does not provide the enabling environment for it to operate at a profit.

Fcking scammers who regulates it mtwss

Honestly, if you think you have any hope for Nigeria and Nigerians you are on a long thing.

pussyslayer6666:
I shake my head for nigeria

Because you did not read the article

He said, “Some modular refineries should take up to 50,000 barrels per day, but because of financing you can start with 10,000 barrels and then scale up gradually to 50,000 barrels.

“What do you need to do to produce PMS? It is to put additional investment that will put in the cracker required to produce the PMS. But in this period why they (modular refineries) cannot produce PMS is because we are under full regulation.

“So to me, if they produce PMS today, at what cost are they going to produce it and at what cost are they going to sell under this regulated environment?”

In other words, if you want a madular refinery, you have to let it run at a profit, and that means removing subsides, and allowing the market to control the price...ie make a profit.

Just for Dangote's Monopoly

This is Nigeria !!

Dumb reasons!!!

They can produce and export to neighboring African countries.

They can produce and the government will buy it at subsidize rates too.

It is cheaper to subsidize locally refined petrol than imported petrol.

Hmm so why the continuous suffering

All of una be scammer

Why promote the setting up of modular refineries in the first place if they won't be viable, from the same government's regulations?
This government seems to have perfected the art of excuses and blame game rather than taking responsibility for it's failures.
.. just give Nigerians fuel!

This is what I was saying for long people abused me

Not only that most can't even produce petrol

For what we sale fuel in Nigeria no refinery would break even in 100 years even

Fuel should sale for nothing less than 400 a litre
Not only should subsidy be removed ...#50 to #80 road tax should be imposed for fuel and #100 tax on diesel for road maintenance

Poor people don't benefit from subsidy it's the rich n middle class that do

This basically means that, ‘our suffer neva do’ and that, the only direction that fuel prices can go, even if our refineries are working at full capacity or if PMS is been imported is up!

Maybe Nigerians will start coming to the conclusion that, the best outcome is the availability of fuel and not the cost as a result will be willing to accept the removal the fuel subsidies as a compromise.

Then what's dangote doing?
[b]
You people should know that people are jobless and hunger is real

We need fuel not excuses

Thought there is no more fuel subsidy. They should allow them compete with market prices and also ensure there is proper QA on the pms they produce.

KillMNKnow:
Fcking scammers who regulates it mtwss

The government sets the price of the PMS you buy, and the price is the same , whether you live in Lagos or Owerri, or Sokoto, or Nguru....that's what regulation means

(When there is scarcity, everyone does their thing, but the bigger marketers like Total, Conoil, Oando, and NNPC sell at the official regulated price)

Everything will work in the whole except in Nigeria

Jorze:
So we have to keep importing fuel?

What a shame!

On the other hand, we can remove subsidy, and make it profitable for modular refineries to operate.

A modular refinery needs to make a profit to operate, and government setting the price and paying subsidies does not provide the enabling environment for it to operate at a profit.

I'm I missing something. You pay subsidy on imported products with landing cost inclusive. Yet you can't pay subsidy to encourage local modular refining pending when you are sensible enough to deregulate. It's either I'm too stupid to understand what's up or the MD is a Duns. Irredeemable Clowns

After all the much talk, what is the solution or way forward so that Nigerians can avoid scarcity of fuel and also buy fuel at a cheaper price?

Am I missing something. You pay subsidy on imported products with landing cost inclusive. Yet you can't pay subsidy to encourage local modular refining pending when you are sensible enough to deregulate. It's either I'm too stupid to understand what's up or the MD is a Duns. Irredeemable Clowns

He didn't state the reasons why. Just gave bogus responses. Dunce.

jmoore:
Dumb reasons!!!

They can produce and export to neighboring African countries.

Because the neighboring African countries will buy the refined fuel from a hypothetical modular refinery at market price, not at N162 per liter.