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Dangote, Port Harcourt Refinery: Competition Will Lead To Price Reduction – IPMAN

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2 hours ago

Nov 27, 2024.

Stakeholders in Nigeria’s oil and gas industry have expressed optimism over the commencement of production at the Port Harcourt Refining Company, highlighting its potential to drive competition, reduce the pump price of petroleum products, and create jobs for Nigerians.

On Tuesday, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, inaugurated a 60,000-barrel-per-day capacity plant at the old Port Harcourt Refinery Depot. Kyari assured Nigerians that other sections of the refinery would be completed in due course, marking a significant milestone in efforts to strengthen the country’s downstream petroleum sector.

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EKO HOT BLOG reports that the Independent Petroleum Marketers Association of Nigeria (IPMAN) hailed the refinery’s operation as a game-changer. Speaking to journalists, IPMAN’s Rivers State Chairman, Tekena Ikpaki, said, “The coming on stream of the Port Harcourt Refinery is a remarkable achievement.

This development will enhance product availability, reduce costs, and boost employment in the sector.”

Other stakeholders echoed similar sentiments, emphasizing the refinery’s role in stabilizing the supply chain, reducing reliance on imported petroleum products, and ensuring competitive pricing. “This is a momentous occasion for Nigerians,” Ikpaki remarked.

“Trucks have been coming in, loading out, and the process is visible and tangible.”

Addressing the combined impact of the Port Harcourt Refinery and the Dangote Refinery, Ikpaki highlighted the benefits of healthy competition.

“When Dangote and NNPCL are competing, Nigerians reap the dividends. Price reductions, like those announced by Dangote over the weekend, are already being felt,” he noted.

The commencement of production at the Port Harcourt Refinery is currently in a test-run phase, with full-scale operations expected soon.

Port Harcourt Refinery

“In no distant time, the inflow of trucks will match its former glory,” Ikpaki added.

The Petroleum Product Retail Outlet Owners Association of Nigeria (PETROAN) also lauded the refinery’s revival, emphasizing its impact on job creation and economic growth. Joseph Obelle, PETROAN’s National Public Relations Officer, expressed optimism about the downstream sector’s future.

“This development will boost the economy, trigger competition, and reduce the price of Premium Motor Spirit (PMS),” he stated.

Obelle commended President Bola Tinubu and NNPCL’s leadership for their commitment to the project. “Funding was a major hurdle, but the determination of Mr. President made it possible,” he said, also praising the host communities for maintaining a peaceful environment during the refinery’s rehabilitation.

He further called for the expedited reconstruction of the Eleme section of the East-West Road to facilitate smooth transportation of petroleum products from the refinery to other parts of the country.

As Nigeria takes a significant step towards energy independence, stakeholders remain hopeful that the resumption of operations at the Port Harcourt Refinery will usher in a new era of economic growth and stability in the petroleum sector.