.Port Harcourt Refinery sells petrol at N1,045 per litre – PETROAN PRO
.As MEMAN x-rays fuel pricing mechanism
Major Energies Marketers Association of Nigeria (MEMAN and International energy expert have linked a possible crash in prices of petroleum products in Nigeria to the status of foreign exchange (Forex) and the prices of crude oil at the international market.
The experts, who spoke at the quarterly webinar and engagement with Energy Editors held by the Major Energies Marketers Association of Nigeria (MEMAN), believed that the coming on stream of the Port Harcourt and Dangote refineries might not herald a regime of drastic crash in fuel prices as being expected by Nigerians, until there is reduction in crude oil prices at the international market and naira gains at the foreign exchange market.
Vice President, Crude Oil at Argus Media, James Gooder, who spoke on “Market Trends Transparency and Fair Pricing” on petroleum products in Nigeria’s petroleum sector, said, Forex remains a key factor to fuel price reduction in Nigeria.
He opined that the coming on stream of Port Harcourt Refinery to complement Dangote Refinery would guarantee supply in the domestic market and also serve the international market
Gooder said that the production from both refineries and other smaller ones across the country would slightly force the prices down, but it may not be a drastic reduction.
“For prices to drop to about N700 or N800 and below, we need to see a substantial change in the foreign exchange as well as reduction in prices of crude at the international market,” he said.
“The advantage of the production is that it will secure supply. We have Dangote and Port Harcourt Refinery now, while Warri and Kaduna are likely to come soon,” he added.
He stated that products being exported from Dangote refinery can bring more dollars into Nigeria and then offset the exchange rate.
Gooder also stated that the refineries will not be restricted to domestic supply as they are also open to international supply in their quest to yield returns.
He expressed optimism that competition would aid the market, urging the regulatory agencies to strengthen the rules and strictly enforce them.
Despite the challenges, there is optimism about the future. “Nigeria’s exchange rate is stabilizing, and crude prices are coming down. These trends are positive for consumers,” Gooder noted. However, infrastructure investment remains a pressing need.
Therefore there is the need for collaborative efforts between the government and all stakeholders in the oil and gas industry to address these issues. “Improving our logistics and infrastructure will not only reduce costs but also enhance energy security,” he maintained.
The Chief Executive Officer of MEMAN, Clement Isong, gave details about the pricing trend and exchange rate movement on imported products.
According to him, the spot price of Premium Motor Spirit (PMS) otherwise known as petrol is currently N976.07, while average price per liter of PMS is N971.14. He put the product cost per metric tonne at N708,39 at foreign exchange rate of N1665.99 to a dollar.
Meanwhile, The recently rehabilitated Port Harcourt Refinery has begun selling Premium Motor Spirit at N1,045 per litre, a price N75 higher than the N970 per litre offered by Dangote Refinery, the Petroleum Products Retail Outlets Owners Association of Nigeria has confirmed.
The refinery resumed operations on Tuesday after years of inactivity, drawing initial praise from Nigerians and industry stakeholders.
However, concerns have arisen over the higher petrol price compared to the ex-depot prices currently available in the country.
Speaking on Wednesday, PETROAN’s National Public Relations Officer, Dr. Joseph Obele, confirmed the price, noting that it has discouraged marketers from lifting products from the refinery.
Obele said, “Yes, the Port Harcourt refinery is selling petrol for N1,045 per litre to marketers.
That is N75 higher than the price from Dangote.
“This high price is why marketers are not going to pick up products from the refinery. But the NNPCL GCEO has assured that the price would be reduced.”
After seven postponements, the Port Harcourt Refinery Company commenced fuel production, promising a daily supply of about 200 trucks, as about one million litres of refined products were released by the plant on Tuesday.
The Nigerian National Petroleum Company Limited unveiled the refinery on Tuesday, saying the old facility, which has a capacity of 60,000 barrels per day, had been revamped and upgraded with modern equipment.
The NNPC said the newly rehabilitated complex of the old Port Harcourt refinery is currently operating at a refining capacity of 70 per cent of its installed capacity.
NNPC added that diesel and Pour Fuel Oil would be the highest output from the refinery, with a daily capacity of 1.5 million litres and 2.1 million litres, respectively.
This is followed by a daily output of Straight-Run Gasoline (Naphtha) blended into 1.4 million litres of Premium Motor Spirit (petrol), 900,000 litres of kerosene, and low-pour fuel oil of 2.1 million litres.
