PETROAN Raises Concerns Over Pricing of Petrol from Port Harcourt Refinery
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has expressed concerns about the pricing of Premium Motor Spirit (PMS) produced by the recently reopened Port Harcourt Refinery. According to the association, petrol from the refinery is priced ₦75 higher per litre than that supplied by the privately owned Dangote Refinery.
Dr. Joseph Obele, PETROAN’s Public Relations Officer, raised the issue during the reopening ceremony of the Port Harcourt Refinery on Tuesday. He commended the federal government for its efforts to restore the refinery’s operations but emphasized that the pricing disparity could create significant challenges for petroleum marketers.
Price Disparity Between Refineries
Dr. Obele revealed that while the Dangote Refinery supplies petrol at ₦970 per litre, the Nigerian National Petroleum Company Limited (NNPCL) is selling PMS from the Port Harcourt Refinery at ₦1,045 per litre. This ₦75 difference, he explained, undermines competitiveness in the market, especially for smaller petroleum marketers who rely on price parity to sustain profitability.
“The profitability of petroleum marketers depends largely on competitive pricing,” Obele stated. “This disparity, if not addressed, could pose a serious challenge to the sector, impacting both marketers and end consumers.”
Operational Milestone for Local Refining
Despite these concerns, Obele acknowledged the reopening of the Port Harcourt Refinery as a significant milestone in Nigeria’s quest to reduce dependency on imported fuel. The facility, now operating at an initial capacity of 60,000 barrels per day, is seen as a step toward revitalizing local petroleum production.
He noted that the restoration of the refinery aligns with national efforts to strengthen the downstream petroleum sector and reduce foreign exchange pressures from fuel importation.
NNPCL’s Plans for Price Harmonization
To address the pricing issue, Dr. Obele disclosed that NNPCL’s Group Chief Executive Officer, Mele Kyari, has assured stakeholders of ongoing plans to harmonize petrol prices between the Port Harcourt Refinery and other suppliers. These efforts are expected to minimize the impact of the pricing disparity on marketers and consumers alike.
Kyari’s commitment is seen as a move to stabilize the downstream petroleum sector and foster a level playing field for all industry players.
Calls for Further Reforms
While the refinery’s reopening is widely regarded as a positive development, PETROAN has urged the federal government and NNPCL to implement additional reforms to ensure pricing stability in the sector. The association stressed that competitive and fair pricing is essential for the sustainable growth of the downstream petroleum market.
As the Port Harcourt Refinery ramps up production, stakeholders are hopeful that the issues surrounding pricing disparities will be resolved promptly to maximize the benefits of increased local refining capacity.
