The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has expressed concern over the pricing disparity between petrol supplied by the Nigerian National Petroleum Company Limited (NNPCL) and the Dangote Refinery. According to PETROAN’s Public Relations Officer, Dr. Joseph Obele, petrol produced by the recently activated old Port Harcourt Refinery costs ₦1,045 per liter, ₦75 higher than that sold by the Dangote Refinery ¹.
Obele made this known while speaking at the official reopening ceremony of the refinery, which is now operating at a capacity of 60,000 barrels per day. He initially applauded the federal government for revitalizing the old refinery, describing it as a significant step in reducing Nigeria’s dependence on imported petroleum products.
However, Obele expressed concern over the pricing disparity, stating that the ₦75 price differential is a steep margin for businesses, particularly in an industry where profitability hinges on competitive pricing ¹. He noted that while Dangote Refinery sells petrol to marketers at ₦970 per liter, NNPCL’s price stands at ₦1,045 per liter.
The PETROAN Public Relations Officer described the refinery’s restoration as a major milestone in reducing Nigeria’s dependence on imported petrol products. He also reassured that the Group Chief Executive Officer of NNPCL, Mele Kyari, has promised to address the issue and harmonize prices to mitigate the impact on marketers and consumers.
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. The refinery’s restoration is seen as a positive step towards stabilizing Nigeria’s downstream petroleum sector ².
Obele’s concerns over the pricing disparity highlight the need for a competitive pricing strategy that benefits both marketers and consumers. The PETROAN Public Relations Officer’s call for harmonized prices is a step in the right direction towards achieving this goal.
As the Port Harcourt Refinery resumes operations, stakeholders will be watching closely to see how the pricing disparity issue is addressed. The refinery’s restoration is a significant development in Nigeria’s oil and gas sector, and its impact will be felt across the country.
In conclusion, the reopening of the Port Harcourt Refinery is a welcome development, but the pricing disparity issue needs to be addressed to ensure a level playing field for marketers and consumers.
