Oil marketers are preparing to start acquiring petroleum products from the Port Harcourt Refining Company, as efforts intensify to get the refinery operational following directives from the Nigerian National Petroleum Company Limited (NNPCL). Industry insiders suggest that once operational, the refinery could offer Premium Motor Spirit (PMS), commonly known as petrol, at a competitive rate of around N500 per liter.
The anticipation builds as the Dangote Petroleum Refinery, also projected to commence operations soon, is expected to further influence fuel prices. Currently supplying diesel, the Dangote refinery has significantly undercut diesel prices and is set to do the same for petrol in the coming months.
Recent visits by members of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Rivers State Branch, to the Port Harcourt refinery revealed promising progress, with refined petroleum products likely to be available as early as this month. National Public Relations Officer for IPMAN, Chief Ukadike Chinedu, shared that independent dealers are particularly eager to purchase and distribute the refinery’s products, hoping for a notable drop in prices.
While the NNPCL continues to sell PMS at N567.7 per liter, expectations are high that the newly operational Port Harcourt refinery will offer a more favorable pricing structure. Ukadike commented on the current status of preparations at the refinery, noting that the plant is close to beginning the production of petrol and other refined products, as confirmed by the NNPCL's recent announcements.
The Group Chief Executive Officer of NNPCL, Mele Kyari, reported earlier this month that the mechanical completion of the Port Harcourt, Warri, and Kaduna refineries had been achieved. The Port Harcourt refinery, with significant crude oil reserves already stocked, is undergoing final regulatory compliance tests and is expected to start operations within two weeks. The Kaduna refinery is slated to follow by December.
In preparation for the imminent start of production, Ukadike disclosed that marketers are coordinating with banks to ensure sufficient funds are available for bulk purchases. This move mirrors the strategy employed by the Dangote refinery, which has facilitated large-volume sales to enhance distribution efficiency.
Tekena Ikpaki, the Port Harcourt Branch Chairman of IPMAN, also affirmed that refinery management had assured local operators of the impending commencement of operations. This development comes as oil marketers nationally anticipate the integration of the Dangote refinery’s PMS into the market, potentially lowering petrol prices to below N500 per liter.
In related news, Aliko Dangote, CEO of Dangote Group, announced an impending price drop for diesel across Nigeria, projecting that the fuel will be available for as low as N1000 per liter nationwide, a move set to disrupt the longstanding profiteering in the sector.
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