By Samiat Dec, 02, 2024 Business

Port Harcourt Refinery Resumes Low-Key Operations Amid Pricing Controversy ⛽💹

Key Points

1. Refinery Update

• The Port Harcourt Refining Company (PHRC) clarified that operations were scaled down, not halted, to allow for technical upgrades and capacity enhancement.

• Managing Director Ibrahim Onoja and officials assured the public of ongoing product distribution, including Premium Motor Spirit (PMS), kerosene, and diesel.

2. Challenges in Product Distribution

• While 11 loading bays are operational, only three are actively used due to their high efficiency.

• Terminal Manager Worlu Joel revealed that tanker drivers’ low turnout is delaying product evacuation, though surplus products are available.

3. Pricing Controversy

• Reports emerged claiming PMS from the Port Harcourt refinery is sold at ₦1,030/litre, higher than products from Dangote Petroleum Refinery.

• The Independent Petroleum Marketers Association of Nigeria (IPMAN) has rejected this pricing and expressed hope for a review, stating they would opt for cheaper alternatives.

• The Nigerian National Petroleum Company Limited (NNPCL) denied the pricing claim but did not provide an official figure.

4. Expert Insights

• Energy Consultant Henry Adigun explained that the refinery currently blends products to meet required standards, estimating the price of blended PMS at ₦860-₦870/litre.

• The refinery is undergoing upgrades to eventually produce standard petrol without blending, a process that will take time.

5. Environmental and Economic Concerns

• The Crude Oil Refineries Owners Association of Nigeria (CORAN) highlighted concerns about blending, including emissions and the sustainability of importing components like naphtha for blending.

6. NNPCL’s Statement

• NNPCL stated that current PMS products are reserved for its retail outlets and promised periodic price reviews aligned with operational realities.

Reactions and Industry Dynamics

• IPMAN criticized the high cost and noted that petrol from the PH refinery should be more affordable than imported alternatives.

• CORAN emphasized that blended petrol must be competitively priced to ensure long-term feasibility.

This development underscores the complexities of local refining and distribution in Nigeria, highlighting the tension between operational upgrades and market realities.

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