Retailers to Begin Loading Fuel from Port Harcourt Refinery This Week
Port Harcourt Refinery – insightsnig
Retailers in Port Harcourt are set to begin lifting fuel directly from the local refinery this week, aiming to reduce prices and improve supply. PETROAN has called on the NNPCL to eliminate price disparities between Lagos and Port Harcourt. This move follows the resumption of the old refinery and ongoing upgrades to the new facility, signaling progress in local refining capacity.
Refinery to Boost Local Supply
Retailers and marketers of petroleum products in Port Harcourt are set to begin lifting Premium Motor Spirit (PMS) from the Port Harcourt Refinery this week, according to the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN). Since the refinery resumed operations in November, it has been supplying only Nigerian National Petroleum Company Limited (NNPCL) outlets. This moves to include independent marketers aims to increase local fuel availability.
Addressing Price Disparities
Joseph Obele, the Publicity Secretary of PETROAN, highlighted a pressing issue: Port Harcourt marketers are purchasing PMS at a higher price than their counterparts in Lagos. He urged the NNPCL to ensure that the refinery sells directly to Port Harcourt retailers at the same rate as Lagos marketers, which is N899 per litre. Currently, Port Harcourt retailers pay N970 per litre due to additional logistics costs, a disparity Obele believes is unfair.
“With the Port Harcourt Refinery now operational, we hope for fair pricing that benefits both marketers and consumers.”
Preparing for Direct Refinery Sales
Marketers in Port Harcourt and surrounding areas are yet to purchase directly from the Port Harcourt Refinery. Obele confirmed that retail outlets owned by NNPCL have been the primary beneficiaries of the refinery’s output so far. However, this is expected to change, as direct sales to other marketers are planned to begin this week. This change will potentially reduce logistics costs and lower prices for local consumers.
The Call for Equal Pricing
Obele emphasized the need for fair pricing, urging the NNPCL to reconsider its pricing strategy for marketers in Port Harcourt. He explained that with direct access to the refinery, Port Harcourt marketers should no longer face higher prices. Obele hopes this adjustment will benefit retailers and, ultimately, end consumers by stabilizing fuel prices in the region.
The Bigger Picture Refinery Rehabilitation
The resumption of operations at the old Port Harcourt Refinery is part of a broader effort by the NNPCL to boost local refining capacity. Rehabilitation work on the larger refinery with a 150,000 barrels per day capacity is ongoing, promising a more sustainable fuel supply in the near future. This progress represents a significant step toward reducing Nigeria’s reliance on imported fuel.
Conclusion
The commencement of fuel lifting by Port Harcourt retailers marks a step toward fair pricing and improved local supply. By addressing price disparities, the NNPCL can support businesses and consumers alike while fostering economic stability in the region.
