Port Harcourt Refinery Sells Petrol at ₦75/Litre More Than Dangote Refinery

PETROAN Urges Price Harmonization as NNPCL, Dangote Refinery Petrol Prices Differ

This pricing gap poses a significant challenge for businesses in the petroleum sector, which relies heavily...

PETROAN highlights a ₦75/litre price difference between petrol supplied by NNPCL and Dangote Refinery, sparking concerns over pricing disparities in Nigeria's petroleum sector.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has revealed a significant price disparity between petrol supplied by the reactivated Port Harcourt Refinery and that from the Dangote Refinery. According to PETROAN, the petrol from the Port Harcourt Refinery costs ₦75 per litre more than the petrol from the Dangote Refinery.

Dr. Joseph Obele, the Public Relations Officer of PETROAN, disclosed this information during the official reopening ceremony of the Port Harcourt Refinery. The refinery resumed production on Tuesday, 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, initially praised the federal government for rehabilitating the refinery.

Dr. Obele's commendation of the federal government's efforts in rehabilitating the Port Harcourt Refinery underscores the significance of this development. The refinery's reopening is expected to enhance Nigeria's petroleum production capacity and reduce reliance on imported petroleum products.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised concerns about the significant price difference between petrol supplied by the Nigerian National Petroleum Company Limited (NNPCL) and the Dangote Refinery. According to PETROAN's Public Relations Officer, Joseph Obele, the Dangote Refinery sells petrol to marketers at ₦970 per liter, while NNPCL's price is set at ₦1,045 per liter, resulting in a ₦75 price differential.

This pricing gap poses a significant challenge for businesses in the petroleum sector, which relies heavily on competitive pricing to remain profitable. Obele emphasized that the ₦75 margin is substantial and could impact the profitability of marketers. Despite this concern, Obele commended the restoration of the refinery, highlighting its importance in reducing Nigeria's dependence on imported petroleum products.

The price disparity has sparked discussions about the need for price harmonization to ensure a level playing field for marketers. The Group Chief Executive Officer of NNPC Limited, Mele Kyari, has reportedly promised to address the issue and harmonize prices to mitigate the impact on marketers and consumers.

Mele Kyari, the Group Chief Executive Officer of NNPCL, has promised to address the price disparity between petrol supplied by NNPCL and Dangote Refinery, ensuring harmonization to ease the burden on marketers and consumers.

The reactivation of the Port Harcourt Refinery is expected to increase local production capacity and reduce Nigeria's reliance on imported petroleum products. This development has been widely welcomed by stakeholders in the industry. However, concerns about pricing disparities highlight the need for further reforms to stabilize Nigeria's downstream petroleum sector.

To address these concerns, the federal government has issued a directive allowing independent petroleum marketers to negotiate and purchase petrol directly from local refineries. This move is expected to foster competition and efficiency in the sector.