Concerns have been raised by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) over the high price of Premium Motor Spirit (PMS) produced by the recently reopened Port Harcourt Refinery.
PETROAN complained that the Port Harcourt Refinery sells its petrol at N1,045 per litre compared to Dangote refinery who sells at N970 per litre. With a N75 disparity, the Association raised concerns as to the high cost of the crude oil product.
Dr. Joseph Obele, the association’s Public Relations Officer, highlighted this during the refinery’s reopening ceremony on Tuesday.
The Port Harcourt Refinery, now operating at 60,000 barrels per day, marks a significant step in revitalising Nigeria’s local petroleum production, however the pricing issue remains.
According to Obele, this price difference poses a significant challenge for petroleum marketers, as profitability in the sector relies heavily on competitive pricing.
Obele also disclosed that NNPCL’s Group Chief Executive Officer, Mele Kyari, has assured stakeholders of plans to harmonise prices to minimise the impact on marketers and consumers.
While import reliance will be reduced with the establishment of the refinery, the pricing disparity highlights the need for further reforms to stabilise the downstream petroleum sector and ensure a level playing field for industry stakeholders.
