Billy Gillis-Harry, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), has responded to criticisms surrounding the operations of the newly relaunched Port Harcourt refinery, calling the claims misleading.
In an appearance on Arise TV News Night, Gillis-Harry addressed the ongoing debate about the refinery’s output, which some critics have labeled as merely a blending plant rather than a full-fledged refinery. He firmly rejected this notion, pointing out that blending is a standard and essential process in the global refining industry.
“Blending is not something new,” Gillis-Harry said, emphasizing that it is a normal practice used worldwide in the refining of crude oil. “I do not know any refinery in the world today that does not engage in blending.”
According to Gillis-Harry, blending is done to manage the volatility of certain petroleum products, particularly Premium Motor Spirit (PMS). He explained that without blending, products like gasoline could evaporate quickly, leading to significant loss of value.
“For the PMS, the volatility rate is very high, and there has to be some kind of blending that will enable the volatility to be stable,” he added. “Otherwise, you will buy a gasoline of N10,000, and before you know it, it has evaporated.”
The Port Harcourt refinery, which resumed operations on Tuesday, has been hailed as a significant step toward reducing Nigeria’s dependence on imported fuel. Gillis-Harry praised the NNPC for its transparency in acknowledging the blending process within the broader framework of refining operations.
“The NNPC has been very open about the blending process, and that is within the scope of the industry,” Gillis-Harry said, reiterating the importance of this practice for maintaining the quality and stability of petroleum products.
Clarifying the N75 Price Controversy
Another point of confusion that Gillis-Harry addressed was the controversy surrounding the pricing of PMS from the Port Harcourt refinery, particularly the claim that it was N75 higher than the price from Dangote Refinery.
“That statement was quoted out of context,” Gillis-Harry stressed. “We have not started loading products from the Port Harcourt Refinery because there is no approval yet for PETROAN or anyone to access products from that depot.”
Gillis-Harry clarified that the price comparison was based on old data and did not reflect the actual pricing at the Port Harcourt refinery, which had not been finalized. He also explained that PETROAN’s focus was on confirming whether PMS production had begun and if the loading process had started, not on pricing.
“The conversation was about verifying if the refinery had produced PMS and if loading had commenced, and that was done,” he said, confirming that the refinery had indeed begun operations. “The N75 conversation was completely out of context,” he added, calling for clarity on the matter.
He further explained that the National Public Relations Officer’s statement about the price referred to a previous purchase made on the NNPC platform, not from the Port Harcourt refinery.
“The price we bought a few days ago had nothing to do with the Port Harcourt refinery,” Gillis-Harry clarified. “It was based on the old template that the NNPC had published earlier, which did not include pricing for the Port Harcourt Depot.”
Approval Processes for NNPC Product Distribution
Regarding the approval process for purchasing products from the NNPC, Gillis-Harry detailed the steps involved. To buy from NNPC, marketers must be qualified, meaning they need an active license and must be listed on the NNPC platform.
“Once qualified, marketers make an application to the NNPC, and they are then approved for a certain quantity of products,” he explained. “After payment is made, the NNPC then schedules the loading of the product.”
However, Gillis-Harry emphasized that these steps have not yet been completed for the Port Harcourt depot, making any discussions about pricing premature. He urged the NNPC to fast-track the process to allow retail outlet owners to benefit from the refinery’s products.
“The process has not been completed for the Port Harcourt depot yet,” he said. “We are asking the NNPC to speed up the approval process so that marketers can begin accessing products and help drive down fuel costs.”
A Positive Step for Nigeria’s Fuel Self-Sufficiency
Despite the confusion and delays, Gillis-Harry remained optimistic about the impact of the Port Harcourt refinery on Nigeria’s fuel self-sufficiency. He acknowledged that the successful relaunch of the refinery is a crucial step in reducing the country’s reliance on imported petroleum products.
“This is a major milestone for Nigeria,” he said, emphasizing the importance of local production for the country’s fuel security. “Once fully operational, the refinery will help stabilize the fuel supply and reduce costs in the long run.”
