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

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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