PETROAN: Port Harcourt Refinery’s Petrol Price ₦75 Higher Per Litre Than Dangote’s

PETROAN reveals that petrol from Port Harcourt Refinery is ₦75 per litre more expensive than Dangote Refinery’s, raising questions about cost disparities in Nigeria’s fuel market.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) announced that the price of Premium Motor Spirit produced by the recently reactivated old Port Harcourt Refinery, which began operations on Tuesday, is ₦75 per litre more expensive than what is offered by the Dangote Refinery.

The association’s Public Relations Officer, Dr. Joseph Obele, disclosed this information at the official reopening ceremony of the refinery, which is now functioning with a capacity of 60,000 barrels per day.

Dr. Obele, a former chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN) at the Port Harcourt Depot, who initially praised the federal government for revitalizing the old refinery, has now expressed concerns about the price differences between petrol supplied by Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery.

He stated that Dangote Refinery sells petrol to marketers at ₦970 per litre, whereas NNPCL sets its price at ₦1,045 per litre, resulting in a difference of ₦75 per litre.

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He mentioned that the ₦75 price difference is a significant margin for businesses, especially in an industry where profitability relies on competitive pricing.

He, on the other hand, characterized the refinery’s restoration as a major advancement in diminishing Nigeria’s reliance on imported petroleum products.

Obele disclosed that Mele Kyari, the Group Chief Executive Officer of NNPCL, has committed to resolving the issue and aligning prices to reduce its effect on both marketers and consumers.

The Port Harcourt Refinery’s reopening is anticipated to boost local production capacity and lessen dependence on imports, a development embraced by industry stakeholders.

Nonetheless, concerns regarding pricing disparities highlight the necessity for ongoing reforms to stabilize the downstream sector of the petroleum industry.