After an extensive period of anticipation, the Port Harcourt refinery in Rivers State is edging closer to commencing operations, eliciting optimism among oil marketers for a potential reduction in fuel prices. Recent visits by oil marketers to the facility have confirmed its readiness to start releasing refined products, particularly Premium Motor Spirit (PMS), commonly known as petrol.
The Nigerian National Petroleum Company Limited has issued directives to expedite preparations at the Port Harcourt Refinery, signaling its imminent operational status. Marketers foresee a significant impact on the market dynamics once the refinery begins production, with expectations of fuel prices potentially dropping by ₦150 per litre.
The ongoing developments coincide with the proactive measures undertaken by the Dangote Refinery, which recently slashed diesel prices from ₦1,700 to ₦1,000 per litre, setting a new industry benchmark.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has shared insights into the market dynamics, suggesting that the Port Harcourt refinery could commence product releases as early as this month. Chief Ukadike Chinedu, the National Public Relations Officer of IPMAN, emphasized the eagerness of independent dealers to procure and distribute products from the refinery.
Chinedu also highlighted the prevailing optimism within the industry, projecting that the combined efforts of the Port Harcourt Refinery and the Dangote Petroleum Refinery could potentially drive fuel prices below the ₦500 per litre threshold.
Abubakar Maigandi, the National President of IPMAN, echoed similar sentiments, expressing hope that petrol prices could reach ₦500 per litre or even lower, mirroring the downward trend observed in diesel prices attributed to the Dangote Refinery’s intervention.
However, Maigandi cautioned that external factors such as fluctuations in the exchange rate could influence future price dynamics, underscoring the need for sustained efforts to stabilize the market.
In a parallel development, the Dangote Refinery’s decision to reduce diesel prices to ₦1,000 per litre has been met with widespread acclaim, with calls from marketers to further adjust prices to a range between ₦700 to ₦850 per litre.
As the Port Harcourt refinery gears up for operations and the Dangote Refinery continues to set industry benchmarks, stakeholders remain cautiously optimistic about the potential for a more affordable and stable fuel market landscape in the near future.
