The reopening of the Port Harcourt Refinery in Rivers State has sparked intense discussions among Nigerian oil marketers regarding pricing and future sourcing of Premium Motor Spirit (PMS).
The refinery, managed by the Nigerian National Petroleum Company Limited (NNPCL), resumed operations earlier this week after years of inactivity. While this development was initially celebrated as a milestone, uncertainty over fuel pricing has raised concerns within the industry.
Oil marketers have made it clear that they will only patronize the Port Harcourt Refinery if its prices are competitive. Specifically, they insist that PMS from the refinery must be cheaper than the rates offered by the privately owned Dangote Refinery.
Currently, Dangote sells PMS at approximately ₦970 per litre, while imported petrol hovers around the same price. In comparison, marketers allege that NNPCL’s PMS is priced between ₦1,040 and ₦1,045 per litre, although the company denies officially releasing prices for the refinery’s products.
According to Olufemi Soneye, spokesperson for NNPCL, the company is still in the process of finalizing bulk sales and pricing.
He said, “We have not yet commenced bulk sales, and we have not yet opened the purchase portal as we are still finalizing the necessary processes.”
He further stated its current stock was procured from the Dangote Refinery and includes fees and levies.
“At present, the products we are selling are what we bought from the Dangote Refinery, which includes NMDPRA fees. The product from PH is currently for our retail stores. Our prices are regularly reviewed and adjusted as required.”
The Port Harcourt Refinery is currently operating at 70% of its installed capacity, producing an array of products including diesel, kerosene, and petrol.
Approximately 1.4 million litres of PMS are expected to be refined daily, alongside 1.5 million litres of diesel and 2.1 million litres of low-pour fuel oil.
Marketers, however, remain cautious. Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), noted that high prices would deter independent marketers from sourcing fuel from NNPCL.
“With the Port Harcourt refinery now working, we are anticipating that any moment from now, NNPC will give us its price. Once NNPC releases its price, we will start loading from NNPC. That is subject to if it is cheaper than that of Dangote.
“The last NNPC price was N1,040 and N1,045 per litre. But I know there will be a review of prices because there has been a crash in prices globally. So, we are expecting a review. Once that review is done, I will be able to give you the actual price. I know they are reviewing it. They are on top of the matter,” the IPMAN spokesman said.
The situation has been further complicated by ongoing PMS imports. Between November 23 and 28, approximately 105.67 million litres of petrol were brought into the country, according to Nigerian Ports Authority records.
A recent high-level meeting involving NNPCL, major marketers, and regulatory authorities highlighted plans to reduce fuel imports and rely more on domestic refineries.
However, the success of these efforts will depend heavily on pricing strategies that accommodate both industry players and consumers.
