Marketers Brace for Possible Fuel Price Hike as Port Harcourt Refinery Test-Run Continues

In a recent briefing in Abuja, the Federal Government confirmed that the Port Harcourt Refining Company is still undergoing a test-run, with expectations that refined petroleum products will soon enter the market.

Oil marketers express apprehension over the recent depreciation of the naira against the U.S. dollar, raising concerns about a potential increase in pump prices for refined petroleum products. They question how the Nigerian National Petroleum Company Limited can sustain the supply of Premium Motor Spirit (petrol) at the current cost, considering the current exchange rate of about N1,450 to one U.S. dollar.

Speaking at an event in Abuja, the Minister of State for Petroleum Resources, Heineken Lokpobiri, clarified that the Port Harcourt refinery’s mechanical aspects have been completed, but various components in the massive structure require time for finalization before product distribution can commence. He compared the situation to the Dangote refinery, commissioned by the Buhari administration, which also took time before releasing products.

Lokpobiri expressed optimism about a significant increase in refining capacity in the next few months, citing ongoing projects like the Port Harcourt refinery, Warri refinery, and the government’s program on modular refineries. He emphasized that the collective efforts would help address Nigeria’s energy needs and enable the supply of refined products to West Africa.

Addressing concerns about the potential rise in the cost of Premium Motor Spirit, Chief Ukadike Chinedu, the National Public Relations Officer for the Independent Petroleum Marketers Association of Nigeria, commended the NNPC for providing PMS but acknowledged that the devaluation of the naira might impact the commodity’s price. He suggested that a hike in the price of PMS is likely given the broader economic challenges in Nigeria.