FG reveals why petrol prices will crash as PH Refinery commences fuel distribution

• Marketers have said that Nigerians should expect a price crash following the commencement of petrol production from the Port Harcourt refinery
• The development comes as trucks began loading petroleum products from the facility for nationwide distribution
• The CEO of Nigerian Midstream and Downstream Petroleum Authority, Farouk Ahmed, said the refinery would bring down the price

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Marketers have said the beginning of petrol production from the Port Harcourt refinery will deepen competition and ensure price reduction and availability.

The refinery kick-started operations 11 months after it completed mechanical repairs.

The Group Chief Executive Officer of NNPC, Mele Kyari, says the company has kept its promise Credit: Bloomberg/NNPC
Source: Getty Images

100 trucks load petrol from Port Harcourt refinery

The development comes as trucks began loading petroleum products from the facility, showing the commencement of crude oil processing at the plant.

Findings show that about 100 trucks have queued up to lift petrol from the refinery as of Tuesday, November 26, 2024.

The Nigerian National Petroleum Company Limited stated on Tuesday, November 26, 2024, that the facility commenced loading petroleum products from the plant, including petrol, diesel, and Kerosene

Marketers project price crash

The executive secretary of the Major Energy Marketers Association of Nigeria (MEMAN), Clem Isong, disclosed that the association had always championed price competition.

Daily Trust quoted Isong as saying that MEMAN members advocate supply diversification, multiple supply channels, open market and price competition.

Also, the Independent Petroleum Marketers Association of Nigeria (IPMAN) expressed excitement at the roll-out of petrol from the Port Harcourt Refinery.

FG projects price crash

The association members hoped the development would boost competition, leading to a price crash.

The national public relations officer of IPMAN, Olarenwaju Okanlawon, said while the PMS price has not changed, the development will crash prices.

IPMAN Chairman Abubakar Maigandi said that only the NNPC trucks currently load fuel at the facility.

He stated that the state oil firm has yet to unveil the refinery’s pricing, saying the association is monitoring developments.

Earlier, the Chief Executive Officer of Nigerian Midstream and Downstream Petroleum Authority, Farouk Ahmed, said the refinery would bring down the price of petroleum products.

European refinery halts operations as Dangote disrupts markets

Legit.ng earlier reported that the Gunvor Group announced it is temporarily stopping its Rotterdam refinery because it is not making enough money.

This is the latest sign that Europe’s plants are struggling to compete with new facilities in other parts of the world.

The company disclosed in a statement that the Refinery’s halt in operations will begin on November 25, 2024, due to the lack of prompt availability of viable feedstock.

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Source: Legit.ng