Warri Refinery: Petrol Price Will Drop Further – Marketers

• Warri refinery resumes, promising lower fuel prices and increased competition.
• NNPCL targets energy independence with ongoing refinery revamps across Nigeria.
• Domestic production to cut fuel imports and stabilize Nigeria’s energy market.

The commencement of operations at the Warri Refining and Petrochemicals Company Limited (WRPC) has sparked optimism for a drop in refined petroleum product prices.

Oil marketers and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) believe intensified competition in the downstream oil sector will drive costs lower.

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EKO HOT BLOG reports that the Nigerian National Petroleum Company Limited (NNPCL) announced on Monday that the Warri refinery, with a capacity of 125,000 barrels per day, has resumed operations.

This milestone follows the recent restart of the Port Harcourt refinery, signaling progress in revitalizing Nigeria’s refineries.

During an inspection tour, NNPCL Group Chief Executive Officer Mele Kyari explained that while repairs on the Warri refinery are ongoing, it is already producing diesel, kerosene, and naphtha. Kyari highlighted plans to export surplus refined products, strengthening Nigeria’s foreign exchange reserves.

President Bola Tinubu celebrated the milestone, noting that the facility operates at 60% capacity. Kyari reiterated the government’s commitment to reviving Nigeria’s refining sector, mentioning that the Kaduna refinery is next in line for resumption.

Marketers welcomed the development. Mustapha Zarma, National Operations Controller of the Independent Petroleum Marketers Association of Nigeria, predicted further price drops as domestic production rises. Ahmed Farouk, NMDPRA Chief Executive, echoed this sentiment, adding that the abundance of refined products would enhance energy security and stabilize prices.

The Warri refinery has undergone a $898 million rehabilitation since 2021. This effort, alongside the startup of the 650,000-barrels-per-day Dangote refinery, has bolstered hopes of ending Nigeria’s reliance on fuel imports.

NNPCL also slashed petrol prices by 12%, a move attributed to heightened competition in the downstream sector. The combination of domestic production from Warri, Port Harcourt, and Dangote refineries is expected to ease pressure on foreign exchange demand and further reduce fuel prices.

As Nigeria progresses toward energy self-sufficiency, stakeholders lauded the refinery staff and contractors for making this achievement possible.

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