Oil marketers outline conditions for purchasing fuel from the Port Harcourt Refinery, while the NNPCL adjusts petrol prices amidst ongoing challenges in the sector.
Oil marketers have specified essential conditions for supporting the newly renovated Port Harcourt Refinery Company (PHRC) in Rivers State, highlighting the importance of competitive pricing.
The marketers declared that they would purchase refined products from PHRC, overseen by the Nigerian National Petroleum Company Limited (NNPCL), only if its prices are lower than those of the Dangote Petroleum Refinery.
This follows claims that the price of petrol from NNPCL is approximately ₦1,045 per litre—claims which the company has denied. On Wednesday, Olufemi Soneye, a spokesperson for NNPCL, explained that pricing has not been finalized since current supplies are only available at NNPCL stations. He also noted that their purchasing portal remains closed and bulk sales have not yet started.
Furthermore, data showed that oil marketers imported 105.67 million liters of petrol into Nigeria within a five-day period. Some marketers suggested they might continue importing petrol to satisfy local demand due to the current pricing dynamics.
OBASANJONEWS learned that 78,800 metric tonnes, equivalent to 105.67 million liters of petrol, were imported into the country over a five-day period from November 23 to November 28.
On Tuesday, the Port-Harcourt refinery, which can accommodate 60,000 people, resumed operations after being inactive for years. This has garnered initial praise from Nigerians and industry stakeholders alike.
The NNPC announced that the recently upgraded complex at the old Port Harcourt refinery, equipped with state-of-the-art technology, is now functioning at 70 percent of its full refining capacity.
NNPC noted that the refinery’s largest outputs would be diesel and Pour Fuel Oil, with daily capacities of 1.5 million liters for diesel and 2.1 million liters for Pour Fuel Oil, respectively.
Subsequently, each day sees the production of Straight-Run Gasoline (Naphtha), which is blended to yield 1.4 million liters of Premium Motor Spirit (petrol), 900,000 liters of kerosene, and 2.1 million liters of low-pour fuel oil.
It was announced that approximately 200 petrol trucks would be distributed into the Nigerian market each day.
However, claims that the national oil company’s PMS price was higher than Dangote’s sparked varied reactions from marketers.
Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, informed one of our correspondents that although NNPC has not announced a price for products from the revamped Port Harcourt refinery yet, setting a high price could deter marketers.
Dangote is currently selling his petrol at N970 per litre, which is roughly the same price as imported petrol.
Ukadike mentioned that there is a possibility the NNPC might lower its prices once the Port Harcourt refinery becomes fully operational.
He confirmed that the state-owned oil company sells a liter of PMS for either N1,040 or N1,045. Meanwhile, the Dangote refinery has recently reduced its price from N990 to N970 for marketers purchasing at least two million liters.
Ukadike was direct in his statement that independent marketers would purchase from either the NNPC or Dangote, depending on which offers a lower price.
Now that the Port Harcourt refinery is operational, we expect NNPC to announce its pricing soon. Once they do and if it proves to be more affordable than Dangote’s rates, we’ll begin loading from NNPC.
“The most recent NNPC prices were N1,040 and N1,045 per litre. However, I anticipate a price review due to the global decrease in prices. Once this review is completed, I’ll be able to provide you with the updated price. I’m aware that they are actively working on it,” stated the IPMAN spokesman.
The latest development suggests that oil marketers might start importing fuel if the prices set by domestic refineries exceed their profit margins, making it more financially advantageous for them to use imported rather than locally produced fuel.
Dr. Joseph Obele, the National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria, previously stated that NNPC petrol was priced at N75 more per litre than Dangote refinery’s rate of N970/litre.
In a statement, PETROAN’s President Billy Gillis-Harry refuted the claim and emphasized that the national oil company has not released any pricing information.
He explained that the association’s members purchased PMS according to the previous pricing structure and are still awaiting the updated prices.
The National Headquarters of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) in Abuja wishes to inform the media and general public that no new price for PMS has been issued by the NNPC Port Harcourt refinery.
Members of PETROAN purchased PMS solely using the old pricing template while they waited.
Revised rates. We are thrilled to announce that the production and loading of refined petroleum products have begun at the Port Harcourt Refinery, and we anticipate that NNPC will soon establish a price for PMS, which will be advantageous for Nigerians.
NNPC responds
However, in a message sent to journalists on Wednesday night, the NNPC spokesperson clarified that the national oil company had not yet begun distributing its products from the Port Harcourt refinery to other oil marketers.
READ ALSO:Dangote: NNPCL Not Sabotaging Domestic Refineries, Says Kyari
He was responding to a previous assertion by the Petroleum Products Retail Outlets Owners Association of Nigeria, which stated that the newly refurbished Port-Harcourt refinery was selling at N1,045 per liter to oil marketers.
He observed that the refinery is supplying products exclusively to NNPCL retail stations.
He stated, “We have not started bulk sales or opened the purchase portal yet because we are still finalizing the necessary processes.”
He also mentioned that their existing stock was sourced from the Dangote Refinery and includes fees and levies.
Currently, the products we are selling have been purchased from the Dangote Refinery and include NMDPRA fees. The product sourced from PH is designated for our retail stores. We frequently review and adjust our prices as necessary.
PMS brings in internationally sourced goods.
According to documents obtained from the Nigerian Ports Authority on Wednesday, the product was transported in four vessels, with the most recent arrival scheduled for today (Thursday, November 28, 2024).
An examination of the document revealed that 38,500 metric tonnes of petrol imported on Monday, November 25th docked at the Lagos Apapa port (Bulk Oil Plant).
Similarly, a Bedford vessel carrying 10,000 metric tons of PMS is scheduled to dock at the Ebughu jetty in Calabar port, Cross Rivers on Thursday, November 28.
Two vessels that arrived on Saturday, November 23 are still waiting to berth. These ships are carrying 30,300 metric tons of fuel.
It was also disclosed that 11,000 metric tonnes of base oil were imported, while the $20 billion Dangote refinery received crude oil amounting to 133,986 metric tonnes on Monday, November 27, 2024.
Last week, oil marketers and the NNPCL announced plans to halt fuel imports in order to concentrate on sourcing from domestic suppliers.
This situation resulted from a high-level meeting arranged by Mele Kyari, the Group CEO of NNPC, along with the Nigerian Midstream and Downstream Petroleum Regulatory Authority. The gathering was attended by representatives from the Major Oil Marketers Association of Nigeria, Depot and Petroleum Products Marketers Association of Nigeria, as well as significant stakeholders from companies like 11 Plc, Matrix Energy Limited (Matrix), AA Rano Ltd., among others at the NNPCL towers in Abuja.
The meeting reflected increasing confidence in Dangote Refinery’s capacity to satisfy the country’s domestic fuel needs and reduce reliance on fuel imports.
