Oil Marketers set conditions for patronizing Port Harcourt refinery as price debate intensifies

tohttp://pnaija.ng/tag/Oil-marketers have outlined specific conditions for purchasing refined products from the newly rehabilitated Port Harcourt Refinery, managed by the Nigerian National Petroleum Company Limited (NNPCL). Chief among these is the expectation that the refinery’s product prices remain competitive, particularly below those of the Dangote Petroleum Refinery, currently a dominant player in the market.

The debate over pricing intensified this week after claims surfaced that NNPCL’s petrol was priced at approximately ₦1,045 per litre—higher than the ₦970/litre offered by Dangote Refinery. However, NNPCL spokesperson Olufemi Soneye refuted these assertions, stating on Wednesday that the Port Harcourt Refinery has not released official product prices, as refined products are currently limited to NNPCL retail stations.

Refinery Operations Resume

The Port Harcourt Refinery recently resumed operations after years of inactivity, with NNPCL announcing that it is now running at 70% of its installed capacity. The facility is expected to produce 1.5 million litres of diesel, 2.1 million litres of low-pour fuel oil, 1.4 million litres of naphtha (blended into petrol), and other outputs daily. The resumption has been met with cautious optimism from stakeholders.

Despite the restart, independent petroleum marketers expressed concerns about pricing. Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), emphasized that marketers would only buy from NNPCL if its products are cheaper than Dangote’s or imported alternatives.

“Marketers are awaiting a price review, as global prices have recently declined,” Ukadike said. “The last NNPC price we encountered was ₦1,040–₦1,045 per litre, but we anticipate adjustments soon.”

Imports Continue Amid Domestic Refining

While the Port Harcourt Refinery ramps up production, oil marketers have maintained significant import volumes. Between November 23 and 28, approximately 105.67 million litres of petrol were imported into Nigeria, according to documents from the Nigerian Ports Authority. This figure underscores marketers’ reliance on imports to meet local demand, especially amid uncertainty surrounding pricing from domestic refineries.

Four vessels carrying 78,800 metric tonnes of petrol have berthed or are scheduled to berth at ports in Lagos and Calabar this week. Additionally, the Dangote Refinery received crude oil shipments worth 133,986 metric tonnes on November 27, signalling its ongoing role in domestic refining efforts.

Industry Meeting and Future Outlook

Recent discussions between NNPCL, regulators, and major oil marketers highlighted plans to phase out fuel imports in favour of domestic sources like the Dangote and Port Harcourt refineries. The move aims to boost local refining capacity and reduce Nigeria’s dependence on costly imports.

Industry stakeholders, however, remain divided over how pricing from domestic refineries will impact their profit margins. PETROAN President Billy Gillis-Harry expressed optimism about the Port Harcourt Refinery’s output but urged patience as stakeholders await finalized pricing structures.

“The production and loading of refined petroleum products have commenced at the Port Harcourt Refinery. Soon, NNPCL will release a pricing structure that benefits Nigerians,” Gillis-Harry stated.