Port Harcourt Refinery Readies for Production, Fuel Price Set at N500/litre

Oil marketers are preparing to load refined petroleum products from the Port Harcourt Refining Company (PHRC) as workers rush to ready the facility for production following directives from the Nigerian National Petroleum Company Limited (NNPC).

Dealers have confirmed that PHRC is nearing readiness to commence releasing products, with a projected price of N500 per litre for Premium Motor Spirit (PMS) from the Port Harcourt refinery in Rivers State.

They are also hopeful that the Dangote Petroleum Refinery will further reduce the PMS price below N500/litre once it starts supplying petrol to the market in May, building on its current supply of diesel to dealers.

Operators from the Independent Petroleum Marketers Association of Nigeria, Rivers State Branch, revealed on Thursday that a visit to the Port Harcourt refinery indicated the plant might begin releasing refined petroleum products this month.

This development aligns with statements from the National Public Relations Officer of IPMAN, Chief Ukadike Chinedu, confirming significant progress at the refinery on Friday.

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RElated News: Dangote Refinery Set to Impact Fuel Market with Introduction of Gasoline Output

Ukadike noted that efforts are underway at the plant to initiate production of petrol and other refined products, consistent with recent announcements by NNPC.

NNPC Group Chief Executive Officer, Mele Kyari, previously stated on March 15, 2024, that the Port Harcourt refinery would commence operations within two weeks.

Kyari also mentioned the completion of mechanical works on the Port Harcourt, Warri, and Kaduna refineries, with plans for the Kaduna refinery to start operations in December.

He emphasized the completion of necessary regulatory compliance processes before refinery operations commence.

Oil marketers are strategizing to purchase products in bulk from the refinery, leveraging Dangote Petroleum Refinery’s model of selling in bulk.

Marketers are engaging with financial institutions to secure funding for bulk allocations, ensuring nationwide distribution.

The anticipation surrounding the Dangote refinery’s potential entry into the domestic market stems from its recent success in reducing diesel prices significantly.

The National President of IPMAN, Abubakar Maigandi, expressed optimism that the refinery might sell petrol at or below N500/litre, influenced by the rebound of the naira against the dollar.

However, Maigandi cautioned that if the dollar strengthens, petrol prices could revert to normal rates.