The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has stated that the Port Harcourt Refinery Company Limited has not yet released any new purchase price for Premium Motor Spirit (PMS).
Dr. Billy Gillis-Harry, the National President of PETROAN, made the announcement in a statement on Wednesday.
According to NAN, the refinery, operated by the Nigerian National Petroleum Company (NNPC), began its first truck-out of petroleum products on Tuesday, marking the re-streaming of the rehabilitated facility.
This re-streaming and the commencement of truck loading signal the beginning of crude oil processing at the plant, with plans to deliver petroleum products to the market.
Currently operating at 70% of its 60,000 barrels per day (bpd) capacity, the rehabilitated refinery aims to ramp up its production to 90% in the coming months.
In response, Dr. Gillis-Harry noted that PETROAN members have been purchasing PMS based on the old pricing template while awaiting the announcement of new prices.
“We are pleased that production and loading of refined petroleum products have begun at the refinery, and we expect NNPC to soon announce the new price of PMS for the benefit of Nigerians,” he said.
No bulk sales yet – NNPC
In reaction, Mr. Olufemi Soneye, the Chief Corporate Communications Officer of NNPC Ltd., clarified that the company had not yet commenced bulk sales.
“We have not yet started bulk sales, nor have we opened the purchase portal as we are still finalizing the necessary processes,” Soneye explained.
He further stated that the products currently being sold at NNPC retail outlets were sourced from the Dangote Refinery, which includes the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) fees.
“The product from the Port Harcourt Refinery is currently reserved for our retail stores. Our prices are regularly reviewed and adjusted as required,” the NNPC spokesperson concluded.
What you should know
Several factors led to the construction of the Port Harcourt Refinery and one of which is that Nigeria has faced a persistent challenge in meeting its domestic fuel demand, leading to a heavy reliance on petroleum imports which is hindering the growth of the economy. This dependency on imports has long been a major issue.
Following Timipre Sylva’s declaration of exiting the importation of petroleum, He stated that the government could carry out this plan of action.
- The fuel price remains a significant concern for many Nigerians, as the country seeks to strike a balance between ensuring domestic supply and maintaining affordable fuel prices for consumers.
- The price of PMS is expected to be influenced by the restart of the refinery, but clarity is still awaited as discussions continue around pricing strategies and market regulations.
- While this delay persists, the refinery has the potential to reduce the country’s reliance on costly fuel imports and could ultimately enhance Nigeria’s energy security and economic stability.
- The Refinery, now in operation, will play a critical role in reducing the nation’s reliance on imported fuel and also help provide much-needed refined products for local consumption. As it continues to operate and expand.
While this delay persists, the refinery has the potential to reduce the country’s reliance on costly fuel imports and could ultimately enhance Nigeria’s energy security and economic stability.
