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PH Refinery: Limited Operation Begins, Marketers Reject N1,030/Litre Price

Published

5 hours ago

Dec 2, 2024.

The Port Harcourt Refining Company (PHRC) has scaled down its operations to enhance the facility while resuming limited product distribution, including Premium Motor Spirit (PMS), kerosene, and diesel.

This development comes as independent petroleum marketers challenge the proposed price of N1,030 per litre for petrol from the refinery, citing concerns over affordability compared to alternatives like the Dangote Petroleum Refinery.

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EKO HOT BLOG reports that PHRC Managing Director Ibrahim Onoja clarified that operations were temporarily reduced for technical upgrades and assured consistent distribution despite the ongoing improvements.

Terminal Manager Worlu Joel confirmed the refinery’s capability to evacuate large volumes, noting surplus product availability and operational efficiency. However, a low turnout of tanker drivers has affected distribution rates.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) rejected the rumored N1,030/litre price for PMS, labeling it unsustainable. IPMAN spokesperson Chinedu Ukadike stressed the need for competitive pricing, stating that marketers would opt for cheaper sources until a price review is conducted.

Energy consultant Henry Adigun argued that PMS from the refinery, being a blended product, should cost between N860 and N870 per litre. Adigun explained that the facility is currently producing straight-run gasoline, which requires blending to meet quality standards.

Meanwhile, the Crude Oil Refineries Owners Association of Nigeria (CORAN) highlighted potential concerns with blending, such as environmental impacts and sustainability, if imported feedstocks are involved.

PH Refinery Operation

The Nigerian National Petroleum Company Limited (NNPCL) maintained that the refinery’s output is presently exclusive to its retail outlets and emphasized periodic price adjustments to reflect operational realities.

This low-key operational resumption marks a significant step in PHRC’s efforts to regain efficiency while sparking discussions on pricing and production strategies in Nigeria’s refining sector.