The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised alarms over a troubling price disparity in Nigeria’s petroleum market. According to the association, petrol supplied by the recently reopened Port Harcourt Refinery is priced at ₦1,045 per litre—₦75 higher than the ₦970 per litre from the Dangote Refinery.
Speaking during the reopening ceremony of the Port Harcourt Refinery on Tuesday, PETROAN’s Public Relations Officer, Dr. Joseph Obele, shed light on this issue. The refinery, now operating at a capacity of 60,000 barrels per day, is expected to enhance domestic fuel production. However, the steep price difference has sparked concerns about its impact on marketers and consumers.
Dr. Obele, a former chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN) at the Port Harcourt Depot, commended the federal government for reviving the refinery. Yet, he warned that the pricing gap could undermine the competitiveness of marketers, stressing that “competitive pricing is crucial for sustainability in this volatile industry.”
Obele disclosed that Mele Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), assured stakeholders of plans to harmonise the price differences. The move, he stated, is aimed at cushioning the effects of this disparity on businesses and consumers alike.
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While the restoration of the Port Harcourt Refinery marks a significant step toward reducing Nigeria’s reliance on fuel imports, stakeholders argue that the pricing inconsistency underscores deeper issues within the downstream petroleum sector.
Experts predict that this pricing anomaly could lead to higher transportation and logistics costs, trickling down to everyday Nigerians. Marketers also face challenges in maintaining profitability amidst fluctuating fuel prices.
The reopening of the Port Harcourt Refinery has been celebrated as a breakthrough for Nigeria’s energy sector. However, the disparity between its petrol pricing and that of the Dangote Refinery serves as a stark reminder of the need for comprehensive reforms to stabilise the downstream sector and ensure fair competition.
