Oil marketers are preparing to procure refined petroleum products from the Port Harcourt Refining Company (PHRC), as the facility gears up for production under the directives of the Nigerian National Petroleum Company Limited.
Marketers Prepare for Production
On Friday, dealers confirmed that the PHRC is nearing readiness to commence releasing products, with projections suggesting a price of N500 per litre for Premium Motor Spirit (PMS), commonly known as petrol, from the Port Harcourt refinery in Rivers State.
Marketers expressed optimism that the entry of Dangote Petroleum Refinery into the market would further drive down the price of PMS below N500 per litre. Currently, the Dangote refinery supplies diesel to dealers and is anticipated to begin supplying petrol in May.
Operators under the Independent Petroleum Marketers Association of Nigeria, Rivers State Branch, reported their visit to the Port Harcourt refinery, confirming significant progress towards product release. This affirmation was echoed by the National Public Relations Officer of IPMAN, Chief Ukadike Chinedu.
Insights from Marketers
Ukadike highlighted that efforts were underway at the plant to commence petrol production, aligning with recent announcements by the NNPC. He emphasized the expectations of a price reduction from the refinery, although no official pricing has been declared yet.
The Group Chief Executive Officer of NNPC Ltd, Mele Kyari, announced that the Port Harcourt refinery would kickstart operations within two weeks. Kyari also outlined the completion of mechanical works at the Port Harcourt, Warri, and Kaduna refineries, with the Kaduna refinery slated to commence operations by December.
Inventory and Future Plans
Kyari disclosed that over 450,000 barrels of oil had been stocked at the Port Harcourt refinery, setting the stage for production. Additionally, discussions among oil marketers centered on strategies to procure products in bulk, mirroring the approach taken by the Dangote Petroleum Refinery.
Efforts are underway to secure funding from banks to support bulk purchases and nationwide distribution of petroleum products. Tekena Ikpaki, the Port Harcourt Branch Chairman of IPMAN, affirmed the commitment of refinery management to initiate operations soon.
Impact of Dangote’s Refinery on Fuel Price
Marketers eagerly await the potential impact of the Dangote refinery on petrol prices, drawing parallels with the significant reduction witnessed in diesel prices. The National President of IPMAN, Abubakar Maigandi, anticipates petrol prices to drop below N500 per litre, especially considering the recent rebound of the naira against the dollar.
Pricing Perspectives
While Maigandi remains optimistic about price reductions, the Major Energies Marketers Association of Nigeria expects PMS prices from the Dangote refinery to align with import parity rates. However, Aliko Dangote, CEO of Dangote Group, hinted at a significant drop in diesel prices and expressed commitment to ensuring affordability nationwide.
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As the Port Harcourt refinery prepares for production and the Dangote refinery’s impending entry into the market, stakeholders in the petroleum industry anticipate significant shifts in pricing dynamics, aiming for affordability and accessibility of petroleum products across Nigeria.
