BREAKING: Oil Marketers Reject PH Refinery’s N1,030/litre Petrol Price

Oil Marketers have rejected PH Refinery’s N1,030/litre Petrol Price.

NaijaOnPoint Nigeria reports that the Port Harcourt Refining Company (PHRC) has confirmed that its operations were not entirely halted but scaled down temporarily to implement improvements.

This clarification came as the Independent Petroleum Marketers Association of Nigeria (IPMAN) expressed concerns over the potential high cost of petrol produced at the facility.

On Sunday, PHRC officials addressed claims by oil retailers suggesting that the Nigerian National Petroleum Company Limited (NNPCL) was selling petrol from the refinery at N1,030 per litre—about N60 higher than petrol from the Dangote Refinery.

While NNPCL denied the claims, it has yet to disclose the official price of petrol from the newly upgraded refinery.

During a guided tour of the facility, Executive Director of Operations at the Nigerian Pipeline and Storage Company Limited, Moyi Maidunama, reassured journalists of ongoing operations.

He acknowledged a temporary reduction in output to address technical issues, stating, “The operations were not halted but scaled down for necessary upgrades. We are currently managing distribution using available loading arms, and normal operations will resume soon.”

Terminal Manager Worlu Joel highlighted ongoing product distribution, including Premium Motor Spirit (PMS), kerosene, and diesel.

However, he noted low turnout from tanker drivers, despite surplus products and operational loading arms.

“We’ve already dispatched over 10 trucks today and expect to load at least 15 by the end of the day,” Joel said.

PHRC Managing Director, Ibrahim Onoja, emphasized significant upgrades at the refinery, including replacing outdated equipment to enhance efficiency and reliability.

“The plant is operational, and we are actively distributing products,” he said.

IPMAN’s Concerns

IPMAN, however, voiced its dissatisfaction with the rumored pricing. Spokesperson Chinedu Ukadike warned that independent marketers would avoid purchasing from PHRC if the price of petrol remains at N1,030 per litre.

“If the Port Harcourt refinery’s PMs price is truly N1,030, it is unacceptable to us independent marketers. We will not buy from them. We will buy where it is cheap” he stated, urging NNPCL to review its pricing strategy.

“They promised to review the price. We will wait till then, but now we will buy from where it is cheaper,” he told The PUNCH.

NNPCL has clarified that PMS from the Port Harcourt refinery is currently distributed exclusively through its retail outlets, with pricing subject to periodic reviews based on operational realities.

Expert and Industry Reactions

The Crude Oil Refineries Owners Association of Nigeria (CORAN) and energy experts weighed in on the refinery’s operations and pricing.

CORAN’s National Publicity Secretary, Eche Idoko, explained that blending naphtha with cracked C5 to produce petrol could reduce production costs but raised concerns about environmental impact and sustainability if blending components are imported.

Energy consultant Henry Adigun projected that the blended PMS from PHRC should cost between N860 and N870 per litre.

He clarified that while the refinery is not yet producing petrol directly to standard specifications, blending remains a common practice globally.

“Blending is normal, but the current phase of the Port Harcourt refinery is not producing petrol without blending. This stage determines the pricing,” Adigun explained.

Related