The recently rehabilitated Port Harcourt Refinery has resumed operations, selling Premium Motor Spirit (PMS) at N1,045 per litre, which is N75 higher than the N970 per litre offered by Dangote Refinery.
This development was confirmed by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).
The refinery, which resumed production on Tuesday after years of inactivity, has sparked mixed reactions from Nigerians and industry stakeholders.
While many initially commended its reactivation, concerns have been raised about the elevated price of petrol compared to prevailing ex-depot prices.
Speaking on Wednesday, PETROAN’s National Public Relations Officer, Dr. Joseph Obele, attributed the high cost to marketers avoiding the refinery.
He said, “The Port Harcourt Refinery is selling petrol for N1,045 per litre to marketers. That is N75 higher than the price from Dangote. This high price is why marketers are not going to pick up products from the refinery. However, the NNPC Limited CEO has assured that the price will be reviewed downward soon.”
The refinery, operated by the Nigerian National Petroleum Company Limited (NNPCL), is now producing at 70% of its installed refining capacity after an extensive upgrade. The plant’s output includes daily production of 1.5 million litres of diesel, 2.1 million litres of low-pour fuel oil, 1.4 million litres of naphtha (straight-run gasoline), and 900,000 litres of kerosene.
NNPCL has promised steady supplies of petrol, projecting up to 200 trucks daily from the Port Harcourt Refinery to meet national demand.
Despite initial operational challenges, including price disparities, the reactivation of the refinery marks a significant milestone in Nigeria’s effort to revive its domestic refining capabilities and reduce dependency on imported fuels.
Industry watchers are keenly observing how these developments will affect market dynamics, particularly the competition between NNPCL and privately-owned Dangote Refinery.
