Warri Refinery Resumes Production: Marketers Anticipate Fuel Price Drop

Marketers project a significant reduction in fuel prices as production resumes at the Warri Refinery, boosting supply and stabilizing the energy market in Nigeria.

Oil marketers and the Nigerian Midstream and Downstream Petroleum Regulatory Authority have announced that prices of refined petroleum products are expected to decrease further with the start of operations at Warri Refining and Petrochemicals Company Limited.

Dealers in the downstream oil sector noted that competition is expected to intensify, as domestic refiners will need to lower prices to attract buyers.

They mentioned this on Monday after the Nigerian National Petroleum Company Limited announced that the 125,000 barrels per day WRPC in Delta State had begun operations.

NNPCL also revealed its intention to start exporting domestically refined products abroad in return for foreign currency.

This development occurs just a month after the 60,000 barrels per day Port Harcourt Refinery in Rivers State began its operations.

On Monday, during a tour to inspect the facility, NNPCL Group Chief Executive Officer Mele Kyari stated that the purpose of the inspection was to demonstrate to Nigerians how much work has been completed up until now.

Kyari, speaking to a tour group that included the NMDPRA’s Chief Executive Officer Farouk Ahmed and NNPC Board Chairman Pius Akinyelure, mentioned that while the facility repairs were not fully complete, refining operations had already started. The focus would be on producing straight-run kerosene, diesel, and naphtha.

Nonetheless, President Bola Tinubu, in a statement commemorating the milestone, noted that the facility is currently functioning at 60 percent capacity, which translates to 75,000 barrels per day.

Kyari explained, “We’re giving you a tour of our operational plant. While it’s not fully completed yet and we’re still in the process, we want to dispel skepticism. Many doubt that such achievements are possible here. We aim to show you its reality.”

He mentioned that restarting the Warri refinery will facilitate the nation in becoming a net exporter of petroleum products, as some of these goods are destined for international markets.

Secondly, this plant operates in three stages; we have initiated the first phase, referred to as Area One. This facility is capable of producing AGO (diesel), kerosene, naphtha, and a crude oil blend—all high-quality products demanded domestically with potential for export. As a result, this venture will generate revenue for the company and contribute towards fulfilling Mr President’s promise that our country becomes a net exporter of petroleum products. A portion of these goods will be supplied to international markets.

It’s crucial to note that the President is confident in our ability to make this project successful. He has tasked us with starting all three refineries, and progress is already underway. We’ve initiated operations at the 60,000 barrels per day refinery, and Area One of the Warri refinery is operational. Additionally, other plants designed for PMS production are being activated and will soon be fully functional as well.

“Finally, the Kaduna refinery is operational. We aren’t providing a specific date, but we’ll surprise Nigerians just like last time when Kaduna begins its operations. Our gratitude goes to Mr. President for his unwavering support throughout this journey. I must commend our team for their dedication and strong belief that we can revive this facility in Nigeria. This achievement has been made possible through collaboration with our contractors and all of our staff members; I’m truly grateful to them for making history by demonstrating that it’s achievable to restart a deliberately closed plant—and we’ve shown it’s indeed possible,” he concluded.