Ngelale emphasised that this belief is a myth that does not hold true anywhere in the world.
He explained that the price of petrol is not solely determined by the presence or number of refineries in a country.
Ngelale highlighted that the price is heavily influenced by the international benchmark for crude oil prices, which in turn impacts the cost of refined products.
He elaborated that when global crude oil prices are high, the price of petrol at the pump will rise, and when oil prices are low, the price of petrol will decrease. These market fundamentals are not confined to one country but are determined on the international stage.
Ngelale further emphasised that the primary motive behind building refineries is to generate profits, not to provide cheap fuel.
He clarified that refinery projects involve significant financial investments and are driven by the goal of making money rather than charity or corporate social responsibility.
While Ngelale acknowledged that having functional refineries offers substantial benefits for the country, such as saving transportation and logistics costs, he underscored that cheaper fuel is not one of those benefits.
He mentioned ongoing efforts to enhance Nigeria's refining capacity, including the renovation of the Port Harcourt refinery, the Dangote refinery, and the BUA refinery in Akwa Ibom State. These refineries are expected to reduce the country's dependence on imported refined petroleum products and save significant foreign exchange expenditure.
Ngelale pointed out that Nigeria currently spends around $10 billion annually on foreign exchange to import refined PMS (Premium Motor Spirit), incurring costs associated with transportation, logistics, and foreign partners.
The operation of local refineries would alleviate these expenditures and contribute to savings in the central bank.