The rehabilitated Port Harcourt Refinery has resumed operations, selling Premium Motor Spirit (PMS) at N1,045 per litre. This marks a significant development for Nigeria’s fuel sector, but the higher price compared to Dangote Refinery has raised concerns. The N970 per litre price at Dangote Refinery highlights the growing worry over the Port Harcourt Refinery’s cost.
Price Discrepancy Draws Concerns
PETROAN confirmed the price difference, stating the Port Harcourt Refinery sells petrol N75 higher than Dangote Refinery. Dr. Joseph Obele noted that the higher price is discouraging marketers from buying fuel from the refinery.
Obele stated that the price disparity could hinder the refinery’s success in attracting marketers despite its operational return. He assured that the NNPC GCEO promised to address the pricing issue.
A Promising Start for the Port Harcourt Refinery
The Port Harcourt Refinery’s reopening has been met with a mixture of optimism and skepticism. The Nigerian National Petroleum Company (NNPC) celebrated the refinery’s resumption, marking a significant milestone for Nigeria’s energy sector. The refurbished refinery will produce about one million litres of refined products daily, primarily diesel and low-pour fuel oil.
The plant’s current refining capacity stands at 70% of its installed capacity, producing a range of petroleum products, including 1.4 million litres of petrol daily. This is seen as a promising development for Nigeria’s domestic refining capacity, which has faced numerous challenges over the years.
Impact on Fuel Supply and Prices
Despite its new output, the refinery’s higher petrol prices have raised questions about its impact on the broader market. The Nigerian National Petroleum Company (NNPC) celebrated the refinery’s resumption, marking a key milestone for Nigeria’s energy sector. The refurbished refinery is set to produce approximately one million litres of refined products daily, mainly diesel and low-pour fuel oil.
The refinery’s management has assured that steps will be taken to reduce the price in the coming weeks, with the hope that this adjustment will increase the plant’s attractiveness to marketers. For now, however, the higher price continues to be a point of contention within the industry.
Refining Capacity and Future Projections
The Port Harcourt Refinery, with an installed capacity of 60,000 barrels per day, now operates at 70% capacity. NNPC confirmed that the plant’s modernization included advanced equipment, enhancing its ability to meet Nigeria’s fuel demands.
Diesel and Pour Fuel Oil will be the refinery’s major outputs, with a daily production capacity of 1.5 million litres and 2.1 million litres, respectively. Alongside these, the refinery will produce kerosene, low-pour fuel oil, and a significant amount of naphtha, contributing to Nigeria’s energy supply needDiesel and Pour Fuel Oil will be the refinery’s major outputs, with daily production capacities of 1.5 and 2.1 million litres. Additionally, the refinery will produce kerosene, low-pour fuel oil, and significant amounts of naphtha to meet Nigeria’s energy supply needs.
Future of Nigeria’s Refining Sector
The revival of the Port Harcourt Refinery marks an important step towards increasing Nigeria’s refining capacity and reducing dependence on imported fuel. However, the challenges of price competition and market dynamics remain a key concern. As the refinery continues to ramp up production, stakeholders will be watching closely to see if it can deliver on its promise to ease fuel shortages and drive down prices in the long term.
Follow us on Socials: