The Port Harcourt Refining Company (PHRC) is on the brink of commencing production, with oil marketers gearing up to load refined petroleum products, as confirmed by the Nigerian National Petroleum Company Limited.
The anticipation builds as workers hasten preparations under directives aimed at revitalizing the facility’s operations.
Dealers expressed optimism on Friday, projecting potential pricing of N500 per litre for Premium Motor Spirit (PMS), commonly known as petrol, directly from the refinery in Rivers State.
This development is eagerly awaited amid fluctuating fuel prices that have burdened consumers across the country.
Adding to the hopeful outlook, operators are also eyeing the Dangote Petroleum Refinery, which is slated to begin petrol distribution next month.
Currently supplying diesel, the entry of Dangote refinery into the petrol market is expected to further drive down prices, potentially below the N500/litre mark, offering a significant relief to the market.
On Thursday, members of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Rivers State Branch, during a visit to the PHRC, observed readiness for the refinery to start disbursing refined products imminently.
They anticipate that the refinery might begin operations within the month, a sentiment echoed by IPMAN’s National Public Relations Officer, Chief Ukadike Chinedu.
Chinedu noted that the plant’s completion was largely achieved, confirming Friday’s developments and fueling marketers’ preparations to commence purchasing and loading activities from the refinery.
He highlighted the positive impact expected on fuel pricing, particularly benefiting independent dealers and ultimately consumers.
This revitalization of the PHRC stands as a pivotal moment in Nigeria’s oil and gas sector, promising to stabilize and possibly lower fuel prices, thereby alleviating some economic pressures faced by Nigerians.
Asked whether the refinery has put a price on the PMS to expect from the plant, Ukadike replied, “Not yet. However, NNPC is still giving us PMS at N567.7/litre, so we want to believe that the Port Harcourt refinery should give us the product at N500/litre or less than that.”
Ukadike stated efforts were really ongoing at the plant to begin the production of petrol and other refined products, as recently announced by the NNPC.
Meanwhile, Ukadike also stated that marketers were putting in place measures that would enable them to purchase products in bulk, going by the fact that the Dangote Petroleum Refinery did not sell less than one million litres when it commenced the sale of diesel.
He said, “So when they resume at Port Harcourt refinery and they key into what Dangote has done by selling in bulk, it means that we the independent marketers particularly in the South-East should be able to have a company that can be able to buy up to four/five million litres from the refinery.
“We are also planning to reach NNPC Trading to see whether they will be able to send 20,000 metric tonnes of PMS to our depots, strictly for independent marketers.
“From every indication, the Port Harcourt refinery is almost set to start releasing products. The government has told us that the plant will start production, at least by the end of this month. So we don’t want to be caught unprepared, for instance, if they say we should pay for two million litres and we can’t be able to pay.”
Ukadike also stated that oil marketers were discussing with their banks, adding that the financial institutions “are ready to fund such bulk allocations so that we can be able to distribute it nationwide because we have the reach.”
The oil dealers are also awaiting the potential entry of PMS from the Dangote refinery into the domestic market, with hopes that the company would crash the price of petrol below N500/litre.
The anticipation stemmed from the manners in which the Dangote refinery recently crashed the price of diesel to N1,200/litre in March when the cost of the commodity was around N1,600. The refinery later crashed the price of diesel to N1,000/litre.
The National President, IPMAN, Abubakar Maigandi, said the refinery might sell petrol at N500/litre or below.
Linking this to the rebound of the naira against the dollar, Maigandi told one of our correspondents that the product might be sold at a relatively cheaper price.
While saying the refinery is yet to begin the sale of petrol, the IPMAN president noted: “We are happy the price of diesel is coming down, thanks to Dangote refinery. As for petrol, the sale has not started. We hope petrol too will come down to like N500.
“But if the dollar continues falling, it may go back to the normal rate.”
The Executive Secretary of MEMAN, Clement Isong, said, “I expect the price to be at import parity. Why (will it go down to N500 or low)? Petrol pricing is at the international price. It is based on an international reference. You buy petrol based on a willing-seller, willing-buyer basis.”