The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised concerns over the pricing disparity between fuel from the old Port Harcourt Refinery and the Dangote Refinery.
According to PETROAN’s Public Relations Officer, Dr. Joseph Obele, fuel produced at the old Port Harcourt Refinery is sold at ₦1,045 per litre, which is ₦75 higher than the ₦970 per litre charged by the Dangote Refinery. Dr. Obele made this disclosure during the official reopening of the Port Harcourt Refinery, which is currently operating at 60,000 barrels per day.
Dr. Obele described the price gap as a significant challenge for marketers, highlighting that profitability in the downstream petroleum sector depends heavily on competitive pricing. “The N75 price differential is a steep margin for businesses in an already strained economy,” he said.
NNPCL Confirms Refinery Operations
The Nigerian National Petroleum Company Limited (NNPCL) has corroborated reports that only the old Port Harcourt Refinery in Rivers State is operational. According to the NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, the refinery is working at 70% capacity, producing Straight-Run Gasoline (Naphtha), which is blended to produce 1.4 million liters of Premium Motor Spirit (PMS) daily.
However, contrary to claims of full PMS production, it has been revealed that the refinery is not trucking out PMS. Sources disclosed that the NNPCL blends “Cracked C5 petroleum resins” with Naphtha and other components, marketing it as PMS processed by the refinery.
Industry Implications
This development underscores concerns about the competitiveness and efficiency of government-managed refineries compared to private-sector operations like the Dangote Refinery. With the Dangote Refinery selling at a lower price, PETROAN is urging the government to address the pricing and operational gaps at the Port Harcourt Refinery to ensure fairness for marketers and affordability for consumers.
The reopening of the Port Harcourt Refinery was initially viewed as a milestone in Nigeria’s quest for energy independence. However, these revelations raise questions about the transparency and sustainability of its operations.
Kluemedia will continue to monitor developments in this evolving story.