Port Harcourt refinery petrol price surpasses Dangote’s by ₦75/litre – Marketers
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has reported that the price of Premium Motor Spirit (PMS) from the renovated Port Harcourt refinery, which resumed production on Tuesday, November 26, is ₦75 per litre more expensive than that supplied by the Dangote refinery.
The revelation came from PETROAN’s public relations officer, Joseph Obele, during the refinery’s official reopening ceremony.
Obele commended the Federal Government for revitalising the aging facility but raised alarms about the notable price gap between petrol sourced from the Nigerian National Petroleum Company Limited (NNPCL) and the Dangote Refinery.
Obele pointed out that while Dangote Refinery offers petrol to marketers at ₦970 per litre, the NNPCL’s price is set at ₦1,045, reflecting a significant ₦75 per litre difference.
READ ALSO: Port Harcourt refinery starts production
He emphasised that this price variance poses a considerable challenge for businesses, particularly in an industry where competitive pricing is crucial for maintaining profitability.
Despite the pricing concerns, Obele acknowledged the restoration of the refinery as a crucial development in reducing Nigeria’s reliance on imported petroleum products.
Obele revealed that the group chief executive officer of NNPCL, Mele Kyari, had promised to address the issue and harmonise prices to mitigate the impact on marketers and consumers.
The PETROAN president,-Billy Gillis-Harry also confirmed the development to The ICIR, but expressed optimism that the price would moderate with time once the market achieves price stability with other modular refineries also functioning.
“We’ll achieve price stability with time. I’m pleading that Nigerian exercise patience with our operations,” he said.
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.
Meanwhile, most marketers are optimistic that the increase in local refining capacity by the NNPCL, Dangote Refinery and other modular refineries across the country would help moderate pricing and improve affordability.
Economic watchers are also of the view that lower pricing for PMS is a function of exchange rate volatility.
An oil sector governance expert, Henry Ademola Adigun said “PMS price is a function of foreign exchange. The price is susceptible to foreign exchange volatility. The crude-naira swap deal for me didn’t create much impact on the PMS pricing. I think its more of a political than an economic move.”
Commenting further, an international finance expert and an economist, Muktar Mohammed, believed that prices would moderate if the NNPCL enlists in the Nigerian stock market which would ensure the national oil company is transparently run.
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