Anticipated Reduction: Nigerian Refinery Operations to Impact Petrol Prices, Marketers Ready

The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Major Energy Marketers Association of Nigeria (MEMAN) foresee a slight decrease in the pump price of Premium Motor Spirit, commonly known as petrol, sourced from the Port Harcourt Refining Company once operations commence next month. Both associations have expressed their preparedness to procure products from the facility and have urged the Nigerian National Petroleum Company Limited (NNPCL) to fulfill its commitment of pumping out refined products within two weeks.

In a report by news men on Friday, the Group Managing Director of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, informed the Senate Ad-hoc Committee about the imminent commencement of operations at the Port Harcourt refinery within a fortnight. Kyari emphasized that mechanical works at the Port Harcourt, Warri, and Kaduna refineries had been finalized, with the Kaduna refinery set to commence operations in December.

Abubakar Maigandi, the National President of IPMAN, affirmed that marketers had been apprised of the developments and were prepared to commence product lifting once operations begin. He highlighted that the initiation of production at the refinery would lead to a marginal reduction in petrol prices and an increase in availability, which would complement imported products.

Nigerian National Petroleum Company Limited (NNPCL): Nigeria’s Fuel Market Eyes Marginal Price Dip with Refinery Operations on Horizon

Clement Isong, the Executive Secretary of MEMAN, noted that although the refinery might not meet the entirety of petrol demand, major marketers would procure refined products through NNPCL’s trading arm. Isong emphasized that the price reduction would be marginal due to the domestic production of petrol.

Kyari reassured the Senate that the Port Harcourt refinery had received over 450,000 barrels of crude oil and was poised to deliver refined products to the market, underscoring the government’s commitment to addressing security challenges.

Despite the Federal Government’s announcement in December 2023 regarding the mechanical completion of the Port Harcourt refinery, the production of refined petroleum products is eagerly awaited by Nigerians, who currently rely on imports facilitated by NNPCL.