Old Port Harcourt Refinery is currently operating at 70 per cent of its installed capacity, with plans to ramp up to 90 per cent. Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has said that the price of Premium Motor Spirit churned out by the old Port Harcourt Refinery which resumed production on Tuesday, is ₦75 per litre higher than that sold by the Dangote Refinery. This was revealed by the association’s Public Relations Officer, Dr. Joseph Obele, during the official reopening ceremony of the refinery, which is now operating at a capacity of 60,000 barrels per day. Dr Obele, a former chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN) at the Port Harcourt Deport who initially applauded the federal government for revitalising the old refinery, expressed concern over the pricing disparity between petrol supplied by the Nigerian National Petroleum Company Limited (NNPCL) and the Dangote Refinery.
According to him, while Dangote Refinery sells petrol to marketers at ₦970 per litre, NNPCL’s price stands at ₦1,045, a difference of ₦75 per litre. He said the ₦75 price differential is a steep margin for businesses, particularly for an industry where profitability hinges on competitive pricing. He, however, described the refinery’s restoration as a significant step in reducing Nigeria’s dependence on imported petroleum products.
Obele revealed that the Group Chief Executive Officer of NNPCL, Mele Kyari, has promised to address the issue and harmonise prices to mitigate the impact on marketers and consumers. The reopening of the Port Harcourt Refinery is expected to enhance local production capacity and reduce reliance on imports, a move welcomed by stakeholders across the sector.
However, concerns over pricing disparities underscore the need for continuous reforms to stabilise the downstream sector of the petroleum industry. According to NNPC Port Harcourt refinery is producing the following daily outputs; Straight-Run Gasoline (Naphtha) blended into 1.4 million liters of Premium Motor Spirit, PMS or petrol; Kerosene: 900,000 liters; Automotive Gas Oil (AGO or Diesel): 1.5 million liters; Low Pour Fuel Oil (LPFO): 2.1 million liters; Liquefied Petroleum Gas (LPG): Additional volumes. NNPC further said “it is worth noting that the refinery incorporates crack C5, a blending component from our sister company, Indorama Petrochemicals (formerly Eleme Petrochemicals), to produce gasoline that meets required specifications.
“Blending is a standard practice in refineries globally, as no single unit can produce gasoline that fully complies with any country’s standards without such processes. Additionally, we have made substantial progress on the new Port Harcourt Refinery, which will begin operations soon without prior announcements. We urge Nigerians to focus on the remarkable achievements being realized under the able and progressive leadership of President Bola Tinubu, GCFR, and to support efforts aimed at delivering more dividends to the nation. Malicious attacks on clear progress only undermine the significant strides made by NNPC Ltd. and the country. Let us move forward together in building a stronger and more self-sufficient energy sector”.
