Oil marketers have set specific conditions for engaging with the newly revamped Port Harcourt Refinery, located in Rivers State and managed by the Nigerian National Petroleum Company Limited (NNPCL). According to reports, the marketers have emphasized that the refinery must offer petrol prices that are lower than those of the Dangote Refinery to secure their business moving forward.
This development comes in the wake of reports claiming that NNPCL’s petrol price was approximately ₦1,045 per litre, sparking concern within the oil marketing sector. However, in response to these reports, NNPCL clarified on Wednesday that the company has not yet set an official price for petrol. According to NNPCL spokesperson Olufemi Soneye, the company is still reviewing its pricing strategy and, as of now, bulk sales have not commenced. The purchasing portal for bulk sales remains closed, and currently, refined products are being supplied exclusively to NNPCL stations across Nigeria.
Between November 23 and November 28, oil marketers imported a total of 105.67 million litres of petrol into Nigeria. During this period, marketers expressed concerns that at ₦1,045 per litre, NNPCL’s petrol pricing could drive them to continue relying on imported petrol to meet local demand. According to documents from the Nigerian Ports Authority, which were cited by The PUNCH, four petrol-laden vessels arrived in Nigeria within this time frame, docking at Lagos Apapa Port and the Ebughu jetty in Cross Rivers State.
The Port Harcourt Refinery, which resumed operations on Tuesday after years of dormancy, is currently operating at 70% of its installed capacity. The refinery's daily output includes 1.5 million litres of diesel, 2.1 million litres of low-pour fuel oil, 1.4 million litres of naphtha (which is blended into premium motor spirit), and 900,000 litres of kerosene. Approximately 200 trucks of petrol are expected to be distributed daily from the refinery, marking a significant development in Nigeria's domestic refining capacity.
Despite the restart of the Port Harcourt Refinery, marketers have raised concerns over the refinery’s pricing strategy. As it stands, the Dangote Refinery offers petrol at ₦970 per litre for bulk purchases, making the pricing strategy a critical factor in marketers’ decision-making processes. Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), warned that if NNPCL sets high prices at the Port Harcourt Refinery, it could discourage marketers from engaging with the refinery. However, Ukadike also expressed optimism that NNPCL might adjust its pricing in line with global market trends to make the refinery more attractive to marketers and encourage domestic fuel supply.
