Port Harcourt Refinery Nears Completion, Marketers Eye N500/Litre Petrol

The Port Harcourt Refining Company (PHRC) is close to starting operations, with oil marketers anticipating a price of N500 per litre for Premium Motor Spirit (PMS), commonly known as petrol. This development comes as workers at the facility rush to complete final tasks in response to directives from the Nigerian National Petroleum Company Limited (NNPC).

Dealers from the Independent Petroleum Marketers Association of Nigeria (IPMAN), Rivers State Branch, recently visited the refinery and confirmed that production could begin this month. IPMAN’s National Public Relations Officer, Chief Ukadike Chinedu, noted that the plant’s readiness was progressing well, with independent marketers planning to purchase and load products as soon as production commences.

While the NNPC is currently providing PMS at N567.7/litre, oil marketers expect a lower price from the PHRC. “We want to believe that the Port Harcourt refinery should give us the product at N500/litre or less,” Ukadike said.

The NNPC’s Group Chief Executive Officer, Mele Kyari, had previously announced that the Port Harcourt refinery would start operations in about two weeks, following the completion of mechanical works. Kyari also mentioned that crude oil was already stocked at the refinery and that regulatory compliance tests were underway, a crucial step before production begins.

Meanwhile, oil marketers are gearing up to purchase products in bulk from the Port Harcourt refinery. Given that the Dangote Petroleum Refinery sells in large volumes, IPMAN is making arrangements to buy up to four or five million litres from the PHRC.

The anticipated start of operations at the Port Harcourt refinery coincides with expectations that the Dangote refinery will soon begin supplying petrol to the domestic market, potentially reducing prices below N500/litre. The Dangote refinery has already made a significant impact on diesel prices, with a recent drop from N1,600/litre to N1,200/litre in March, and further reductions expected.

Despite the optimism surrounding these developments, the Major Energies Marketers Association of Nigeria (MEMAN) warns that petrol from the Dangote refinery will be sold at the import parity rate. Clement Isong, MEMAN’s Executive Secretary, stated that petrol pricing is based on international reference rates, suggesting that the market will ultimately determine the final price of petrol in Nigeria.

Overall, the reopening of the Port Harcourt refinery and the potential price reductions brought by the Dangote refinery are creating a sense of cautious optimism among oil marketers and consumers in Nigeria.