• Thu. Feb 13th, 2025

PENGASSAN Confirms Operational Status of Local Refineries, Discusses Fuel Pricing, Tax Reforms At NEC Meeting

Engr Ada Mbanaso
National Chairperson
PENGASSAN Women Commission

Comrade Festus Osifo, President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has highlighted critical issues concerning the functionality of local refineries, fuel pricing, and proposed tax reforms.

This was made during a National Executive Council (NEC) meeting held on Thursday at the Oriental Hotel in Victoria Island, Lagos.

Speaking on the state of the nation’s refineries, Osifo confirmed that both the Port Harcourt and Warri refineries are currently operational, although not at full capacity. He noted that the production of Premium Motor Spirit (PMS) requires intricate processes that go beyond initial distillation, acknowledging the sophistication of modern vehicles compared to those from past decades.

“The enormous work going on in the Kaduna Refinery and the New Port Harcourt Refinery is commendable,” he stated, adding that the production challenges are compounded by Nigeria’s fluctuating exchange rates. He explained that the high cost of PMS is directly tied to the current exchange rate, which influences the price of goods across the board.

“If the exchange rate were to stabilize below a thousand naira to a dollar, we could see prices for PMS drop to around N500 to N600 per liter,” Osifo remarked. He compared Nigeria’s economic situation to that of countries like Venezuela, cautioning against a severe devaluation of the naira.

Osifo also voiced PENGASSAN’s concerns about the proposed increase in Value Added Tax (VAT) and the restructuring of the tax administration system. He argued that expanding the tax net to include more citizens, rather than increasing the VAT rate, would be a more effective way to generate revenue without placing additional burdens on the already struggling populace.

The PENGASSAN President emphasized the importance of maintaining experienced personnel within the Nigerian Revenue Service as it assumes responsibilities currently held by the Federal Inland Revenue Service and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). “We fear that this transition could lead to a dilution of expertise and affect the quality of revenue collection and regulation,” he said.

On a positive note, Osifo announced a successful transition of PENGASSAN members from Nigerian AGIP Oil Company to Oando Energy Resources Limited, as well as from Mobil Producing Nigeria Unlimited to Seplat Energy, both with zero job losses.

Addressing issues in the energy sector, Osifo praised the government’s move towards decentralization of the power sector, emphasizing the need for qualified individuals in key positions, particularly within technical roles like power generation. He called for an increase in Nigeria’s crude oil production capacity to enhance revenue generation and job creation, asserting that the nation could produce as much as four million barrels of oil per day.

Osifo concluded by urging the government to take decisive action on infrastructure security, particularly regarding theft and vandalism of critical installations, while insisting that solutions to these challenges lie within governmental responsibilities.

The NEC meeting underscored PENGASSAN’s commitment to advocating for transparency and international best practices in the oil and gas sector, prioritizing the welfare of its members while striving for a stable economic future for Nigeria.

Hyacinth Beluchukwu Nwafor

Hyacinth Beluchukwu Nwafor is a seasoned journalist and the CEO/Founder Belch Digital Communications, publishers of Hybrid News Nigeria.

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