A price gap of ₦75 per litre has emerged between the petrol produced by the recently restored Port Harcourt Refinery and the fuel sold by Dangote Refinery, raising concerns within the petroleum sector.
The revelation was made by Dr. Joseph Obele, the Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), during the official reopening of the Port Harcourt Refinery on Tuesday.
Obele expressed mixed feelings, commending the federal government for revitalizing the old refinery, which is now operating at a capacity of 60,000 barrels per day. However, he highlighted the significant price disparity between petrol supplied by the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery.
“While Dangote Refinery is selling petrol to marketers at ₦970 per litre, NNPCL’s price is ₦1,045 per litre,” Obele explained. “That’s a ₦75 difference per litre, which is a steep margin for businesses in this sector.”
The price differential comes at a time when Nigeria is seeking to reduce its reliance on imported petroleum products, and the reopening of the Port Harcourt Refinery was seen as a positive step in achieving that goal. However, the price issue highlights challenges in the local market, where competitive pricing is crucial for the survival of businesses, particularly in the retail petroleum sector.
Obele, a former chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN) in Port Harcourt, emphasized that such pricing disparities could hurt marketers, who operate on thin margins. The difference in prices could potentially impact the cost of fuel for consumers, further adding pressure on the already strained economy.
“It is a concern because the fuel price directly affects the cost of goods and services in the country,” Obele noted. “We all know that in this industry, profitability is dependent on competitive pricing, and this disparity could affect that.”
While acknowledging the importance of the refinery’s restoration, Obele pointed out that continuous reforms are necessary to stabilize Nigeria’s downstream petroleum sector and ensure that the benefits of local refining are fully realized.
“We appreciate the restoration of the Port Harcourt Refinery,” Obele said. “It is a good move towards reducing our dependency on imports. But the pricing issue must be addressed for the refinery’s impact to be felt positively across the entire petroleum sector.”
The Port Harcourt Refinery, once the flagship of Nigeria’s domestic refining capacity, has faced years of operational difficulties and underperformance. Its revival is part of the Nigerian government’s broader effort to boost local refining and reduce the country’s reliance on imported fuel.
In recent years, Nigeria has struggled with chronic fuel shortages and high import bills, while its refineries, including those in Port Harcourt, have remained largely idle due to poor maintenance and lack of investment. The revival of the Port Harcourt Refinery is therefore seen as a critical step in addressing these issues.
The refinery’s reopening was a highly anticipated event for the Nigerian petroleum sector. The facility is expected to increase local production capacity and help reduce the nation’s dependence on imports. However, concerns over pricing disparities threaten to overshadow these achievements.
The Nigerian National Petroleum Company Limited (NNPCL), which is responsible for the management of the Port Harcourt Refinery, has been under pressure to address the pricing issues. Dr. Obele revealed that NNPCL’s Group Chief Executive Officer, Mele Kyari, has assured that efforts will be made to harmonize the prices of petrol produced by the refinery with those sold by Dangote Refinery.
“NNPCL is aware of the situation, and Mele Kyari has promised to address the issue of pricing,” Obele stated. “There are plans in motion to ensure that prices are harmonized to make them more competitive and reduce the burden on both marketers and consumers.”
The Port Harcourt Refinery’s reopening is expected to reduce Nigeria’s reliance on imported fuel, but the ongoing pricing disparity between the two refineries could complicate this goal. If not addressed, the price gap could impact local businesses, further inflating the cost of living for Nigerians.
The price differential also comes at a time when Nigeria’s economy is grappling with inflation and rising costs of goods and services. Petrol prices are a key factor in the overall price of goods, and any increase in fuel prices could lead to a ripple effect on the economy.
