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Oil Marketers Eye N500/Litre Petrol Price As Port Harcourt Refinery Gears Up

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8 months ago

Apr 21, 2024.

Oil Marketers Eye N500/Litre Petrol Price As Port Harcourt Refinery Gears Up.
Dealers confirm nearing readiness of PHRC, anticipate reduction in petrol price.
NNPC’s Mele Kyari reveals plans for refinery operations, aiming to alleviate petroleum supply challenges.

EKO HOT BLOG reports that as the Port Harcourt Refining Company (PHRC) gears up for production under the directives of the Nigerian National Petroleum Company Limited (NNPC), oil marketers are eyeing a potential price tag of N500 per litre for Premium Motor Spirit (PMS), commonly known as petrol, from the facility.

Dealers confirmed on Friday the nearing readiness of the PHRC to commence releasing refined petroleum products, with projections hinting at the possibility of petrol hitting the market at the mentioned price point.

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Optimism is high among market players, with expectations also set on the Dangote Petroleum Refinery to further drive down the PMS price once it begins supplying to the market. Currently, the Dangote refinery is supplying diesel to dealers, with plans to start supplying petrol in May.

Members of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Rivers State Branch, visited the Port Harcourt refinery on Thursday, reporting significant progress towards operational readiness. According to Chief Ukadike Chinedu, the National Public Relations Officer of IPMAN, the completion of the plant was affirmed, indicating a potential imminent release of refined petroleum products.

Marketers, especially independent dealers, have already commenced preparations to procure and load products from the refinery. They anticipate a reduction in price, although an official price from the refinery is yet to be announced.

Responding to inquiries about the expected price from the plant, Ukadike stated, “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.”

N500/Litre Petrol

Efforts are underway at the PHRC to kickstart production of petrol and other refined products, as outlined by recent announcements from the NNPC.

Earlier in March, Mele Kyari, the Group Chief Executive Officer of NNPC Ltd, revealed plans for the Port Harcourt refinery to commence operations within two weeks. He assured that mechanical works had been completed on not only the Port Harcourt refinery but also on the Warri and Kaduna refineries. Additionally, Kyari disclosed that the Kaduna refinery was slated to begin operations in December.

During a press briefing after appearing before the Senate Ad-hoc Committee investigating the Turn Around Maintenance projects of the country’s refineries, Kyari emphasized, “We now have crude oil already stocked in the refinery. We are doing regulatory compliance tests that must happen in every refinery before you start it, and I assure you that this Port Harcourt refinery will start in the next two weeks.”