SO SAD! ! Barely 24 Hours After Port Harcourt Refinery Resumed, Petrol Retailers Raise Alarm Over Fuel Increment By N75
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has revealed that fuel produced by the old Port Harcourt Refinery is significantly more expensive than that sold by the Dangote Refinery. According to PETROAN’ s Public Relations Officer, Dr. Joseph Obele, the price disparity poses challenges for marketers and consumers alike.
Speaking during the reopening ceremony of the Port Harcourt Refinery, which is currently operating at 60, 000 barrels per day, Dr. Obele highlighted that the price difference per litre is as high as N75, with Dangote Refinery offering petrol at N970 per litre while the Nigerian National Petroleum Company Limited (NNPCL) sells it at N1, 045 per litre.
This price gap is a significant concern for businesses in the downstream petroleum sector. Competitive pricing plays a crucial role in ensuring the profitability of fuel marketers, and such a steep margin could lead to reduced sales and increased financial strain on operators. The disparity also raises questions about the efficiency and economic viability of the products churned out by the old Port Harcourt Refinery compared to the state- of- the- art Dangote Refinery.
The controversy surrounding the Port Harcourt Refinery extends beyond pricing. The NNPCL recently confirmed earlier reports that the refinery is not producing Premium Motor Spirit (PMS), commonly known as petrol, directly from its operations. Instead, the refinery produces Straight- Run Gasoline (Naphtha), which is blended into PMS. This blending process results in the production of 1. 4 million litres of PMS daily, but the practice has raised eyebrows about transparency and authenticity in product labeling.
SaharaReporters had earlier disclosed, through reliable sources, that the NNPCL was blending Cracked C5 petroleum resins and Naphtha to create PMS, rather than trucking out fully processed petrol as claimed. This revelation undermines the perceived operational effectiveness of the Port Harcourt Refinery, which is said to be running at 70% of its installed capacity. Critics argue that the blended fuel sold as PMS may not meet the same standards as fully refined products, thereby posing potential risks to consumers.
The higher cost of fuel from the Port Harcourt Refinery, coupled with allegations of non- standard production practices, underscores the need for improved oversight, transparency, and efficiency in Nigeria’ s refining sector. For consumers, these issues translate to higher pump prices and potential quality concerns, further highlighting the need for robust reforms in the country’ s petroleum industry.
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