The Nigerian National Petroleum Company Limited (NNPCL) has addressed concerns regarding claims that its petrol price stands at approximately N1,045 per litre, clarifying that no price has been set as the Port Harcourt Refinery Company (PHRC) has not released refined products for public sale. Currently, the products are being dispensed exclusively to NNPCL stations.
Oil marketers have laid out conditions under which they would consider patronising the PHRC. They emphasised that the refinery, now under NNPCL’s management, must offer prices lower than the Dangote Petroleum Refinery. According to industry players, pricing will determine their choice of supplier.
Olufemi Soneye, NNPCL’s spokesperson, stated that the company is still reviewing prices and has not opened its bulk purchasing portal.
Petrol Importation on the Rise
Despite the optimism surrounding the Port Harcourt refinery’s reopening, oil marketers imported 105.67 million litres of petrol into Nigeria within five days, from November 23 to November 28. Marketers have expressed concerns that high local prices could force them to rely on imports.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) alleged that PHRC was selling at N1,045 per litre, a claim NNPCL has dismissed. PETROAN’s National Public Relations Officer, Dr. Joseph Obele, had earlier pointed out that NNPCL’s petrol price was N75 higher than Dangote Refinery’s price of N970 per litre.
However, PETROAN President Billy Gillis-Harry countered this assertion, stating:
“No new price for PMS has been released by the NNPC Port Harcourt Refinery. Members of PETROAN only bought PMS using the old pricing template and await new prices. We are excited about the resumption of production and look forward to NNPC’s announcement of competitive pricing.”
PHRC Operations and Output
The Port Harcourt Refinery, revamped and operating at 70% of its installed capacity, resumed operations earlier this week. Its production includes:
1.5 million litres of diesel daily,
2.1 million litres of Pour Fuel Oil (low-pour fuel oil),
1.4 million litres of Straight-Run Gasoline (blended into PMS), and
900,000 litres of kerosene daily.
NNPCL announced plans to release 200 trucks of petrol daily into the Nigerian market, sparking initial optimism.
Oil Marketers React
Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), stated that NNPCL’s price must be competitive with Dangote’s. He noted that while the current price of NNPCL’s petrol is around N1,040 to N1,045 per litre, global price reductions could prompt a downward review.
“With the Port Harcourt refinery now working, we anticipate that NNPC will announce its price soon. We are hopeful it will be cheaper than Dangote’s price of N970 per litre,” Ukadike said.
If prices at domestic refineries remain high, oil marketers may prioritise importation to maintain profit margins. Ukadike reiterated:
“Independent marketers will only buy from NNPC if the price is more favorable than Dangote’s. A price review is inevitable.”
The reopening of the Port Harcourt Refinery signals progress, but pricing disputes and market competition could challenge the refinery’s ability to dominate the domestic market. Stakeholders and marketers await the NNPCL’s updated pricing structure, which they hope will benefit Nigerians and stabilise the market.
