As the price of diesel nears N2,000 per litre, the Crude Oil Refinery Owners Association of Nigeria has called on the Federal Government to urgently intervene, warning that the development could worsen production costs, food inflation and the cost-of-living crisis.

CORAN, in a statement on Tuesday by its Publicity Secretary, Eche Idoko, said the rise in the price of diesel to nearly N2,000 per litre should concern Nigerians because the product was a major fuel for factories, farms, transportation, telecommunications and businesses.

The association said sustained increases in diesel prices would have severe consequences for the economy, including higher production and transportation costs, worsening food inflation and additional pressure on manufacturers.

CORAN argued that the solution was to strengthen all Nigerian refineries, including the Dangote Petroleum Refinery and modular refineries operating across the country.

It said the issue should not be viewed as a contest between the Dangote refinery and modular refineries, stressing that the former was also a local refinery and national asset that required adequate and predictable domestic crude supply.

According to the association, Nigeria’s existing modular refineries have an estimated installed capacity of about 35,000 barrels per day and could produce between 2.2 million and 2.8 million litres of diesel daily if they operate at full capacity, depending on their configurations and product yields.

CORAN said the Dangote refinery reportedly produced about 19.1 million litres of diesel daily in July, adding that the combined potential output of the large and modular refineries could take domestic diesel production to between 21 million and 22 million litres per day.

The association, however, noted that reported national diesel consumption stood at about 14.7 million litres per day in July, while the country still imported about 244.9 million litres of diesel during the month.

It said the situation showed that urgent measures were needed to increase domestic refining and reduce dependence on imported petroleum products.

CORAN therefore called on the Presidential Committee on Naira-for-Crude to increase and guarantee adequate crude supply to the Dangote refinery and extend the Naira-for-Crude arrangement to existing modular refineries.

It also urged the government to create commercially sustainable crude supply arrangements that would enable Nigerian refineries to operate closer to their installed capacities.

The association said increasing local diesel production would reduce Nigeria’s exposure to imported products, foreign exchange pressures, international freight costs and external market shocks.

“Energy-sector reforms must wear a human face. At a time when Nigerians are struggling with inflation and businesses are fighting to survive, we must go beyond paying lip service to local refining.

“Give Dangote the crude it requires. Give modular refineries access to naira-for-crude. Let Nigerian crude power Nigerian industry. Nigeria produces crude oil. Nigerians must begin to feel the advantage of being an oil-producing nation,” CORAN said.