THE Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said the price of Premium Motor Spirit (PMS) by the old Port Harcourt Refinery which resumed production on Tuesday, November 26, is ₦75 per litre higher than that sold by the Dangote Refinery.
The association’s public relations officer, Joseph Obele, revealed this during the refinery’s official reopening ceremony on Tuesday.
Obele, who initially applauded the Federal Government for revitalising the old refinery, expressed concern over the pricing disparity between petrol supplied by the Nigerian National Petroleum Company Limited (NNPCL) and the Dangote Refinery.
According to him, while Dangote Refinery sells petrol to marketers at ₦970 per litre, NNPCL’s price stands at ₦1,045, a difference of ₦75 per litre.
He said the ₦75 price differential is a steep margin for businesses, particularly for an industry where profitability hinges on competitive pricing.
He, however, described the refinery’s restoration as a significant step in reducing Nigeria’s dependence on imported petroleum products.
Obele revealed that the group chief executive officer of NNPCL, Mele Kyari, had promised to address the issue and harmonise prices to mitigate the impact on marketers and consumers.
The PETROAN president,-Billy Gillis-Harry also confirmed the development to The ICIR but expressed optimism that the price would moderate with time once the market achieves price stability with other modular refineries also functioning.
“We’ll achieve price stability with time. I’m pleading that Nigerians exercise patience with our operations,” he said.
The reopening of the Port Harcourt Refinery is expected to enhance local production capacity and reduce reliance on imports, a move welcomed by stakeholders across the sector.
However, concerns over pricing disparities underscore the need for continuous reforms to stabilise the downstream sector of the petroleum industry.
Meanwhile, most marketers are optimistic that the increase in local refining capacity by the NNPCL, Dangote Refinery and other modular refineries across the country would help moderate pricing and improve affordability.
Economic watchers are also of the view that lower pricing for PMS is a function of exchange rate volatility.
An oil sector governance expert, Henry Ademola Adigun said “PMS price is a function of foreign exchange. The price is susceptible to foreign exchange volatility. The crude-naira swap deal for me didn’t create much impact on the PMS pricing. I think its more of a political than an economic move.”
Commenting further, an international finance expert and an economist, Muktar Mohammed, believed that prices would moderate if the NNPCL enlisted in the Nigerian stock market which would ensure the national oil company is transparently run.
He stressed that the government could get all the money it needed for the remaining refineries if it enlisted in Nigeria’s stock market.
“Enlisting in the stock market should remain the priority of the national oil company now that the refineries are gradually being rehabilitated. This would ensure upbeat investors and Nigerians to own higher stakes in the company,” he added.
The ICIR reported that marketers were expectant about the price moderation and affordability of petrol as the Port Harcourt Refining Company (PHRC) Ltd resumed operations on Tuesday after years of collapse.
The refinery has a combined crude processing capacity of 210,000 barrels per day (bpd) capacity, according to data from Nigeria’s Bureau of Public Enterprise.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.