The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised concerns about the price discrepancy between petrol from the old Port Harcourt Refinery, which resumed operations on Tuesday, and that from the Dangote Refinery. According to PETROAN, the price of petrol produced by the Port Harcourt Refinery is ₦75 per litre higher than that of Dangote’s refinery.
Dr. Joseph Obele, PETROAN’s Public Relations Officer, made this statement during the official reopening ceremony of the Port Harcourt Refinery, which has restarted operations at a capacity of 60,000 barrels per day. Dr. Obele, who is also a former chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN) at the Port Harcourt Depot, initially commended the federal government for revitalizing the refinery but expressed concern over the significant price difference between petrol supplied by the Nigerian National Petroleum Company Limited (NNPCL) and that sold by the Dangote Refinery.
Dr. Obele pointed out that while Dangote Refinery sells petrol to marketers at ₦970 per litre, the NNPCL’s price is currently ₦1,045 per litre, a substantial ₦75 per litre difference. This price gap, he noted, poses a significant challenge to businesses in the sector, where competition is fierce, and profitability depends largely on maintaining competitive pricing.
Despite the pricing issue, Dr. Obele acknowledged the reopening of the Port Harcourt Refinery as a vital step in reducing Nigeria’s reliance on imported petroleum products, a move that could foster greater self-sufficiency in the country’s fuel supply. He emphasized that the refinery’s revival will play a crucial role in improving local production capacity and enhancing energy security.
In response to these concerns, Dr. Obele revealed that Mele Kyari, the Group Chief Executive Officer of NNPCL, has pledged to address the price disparity. Kyari has assured stakeholders that efforts are underway to harmonize the prices and mitigate the negative impact on marketers and consumers alike.
The reopening of the Port Harcourt Refinery, which holds promise for increased local refining capacity and a reduction in import dependence, has been welcomed by many in the sector. However, the ongoing issues with pricing disparities highlight the need for continued reforms within the downstream petroleum industry. Industry stakeholders are calling for a comprehensive review of pricing mechanisms to stabilize the sector and ensure sustainable growth in the long term.
In summary, while the restoration of the refinery marks a significant milestone for Nigeria’s energy sector, the challenge of aligning prices between local refineries remains a key concern that could affect the smooth functioning of the market.
