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2 weeks ago
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The Port Harcourt Refining Company (PHRC) has confirmed that its operations were temporarily scaled down to facilitate necessary upgrades, quelling fears that the refinery had halted production entirely.
This clarification comes amid concerns raised by the Independent Petroleum Marketers Association of Nigeria (IPMAN), who expressed apprehension over the purported price of petrol produced at the facility—N1,030 per litre, which is about N60 higher than fuel from the Dangote Refinery.
The Nigerian National Petroleum Company Limited (NNPCL) has denied the claims regarding the high price of petrol, but has yet to officially announce the current pricing for fuel produced at the newly upgraded refinery.
During a tour of the Port Harcourt refinery on Sunday, Moyi Maidunama, the Executive Director of Operations at the Nigerian Pipeline and Storage Company Limited (NPSC), emphasized that the refinery was operational despite the temporary reduction in output.
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“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,” Maidunama reassured journalists.
He further stated that product distribution, including Premium Motor Spirit (PMS), kerosene, and diesel, was ongoing, though there had been a lower turnout from tanker drivers despite available products.
Terminal Manager Worlu Joel added that over 10 trucks had already been dispatched and expected to increase by the end of the day.
PHRC’s Managing Director, Ibrahim Onoja, also reiterated that significant upgrades were being carried out at the refinery, including the replacement of outdated equipment to enhance its efficiency and reliability.
However, IPMAN remains concerned about the reported price of petrol from the refinery.
Spokesperson Chinedu Ukadike stated that if the price of petrol at PHRC truly stands at N1,030 per litre, independent marketers would not purchase from the facility.
“If the Port Harcourt refinery’s PMS price is truly N1,030, it is unacceptable to us. We will not buy from them. We will buy where it is cheaper,” Ukadike asserted, urging NNPCL to review its pricing strategy.
NNPCL has clarified that PMS from the Port Harcourt refinery is currently being distributed exclusively through its own retail outlets, with prices subject to periodic reviews based on operational realities.
Industry experts have also weighed in on the situation. Eche Idoko, National Publicity Secretary of the Crude Oil Refineries Owners Association of Nigeria (CORAN), explained that blending naphtha with cracked C5 to produce petrol could potentially reduce production costs.
READ ALSO: NNPC Cuts Petrol Price by N15 to Marketers
However, he raised concerns about the environmental impact and sustainability of using imported blending components.
Energy consultant Henry Adigun projected that the blended petrol from PHRC should cost between N860 and N870 per litre.
He explained that while blending is a common practice globally, the current phase of the Port Harcourt refinery is not producing petrol to standard specifications.
He further noted that the blending process will influence the final price of the product.
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