Good News: Fuel Price Set To Crash As Port Harcourt, Dangote Refineries Begin Work
The Nigerian National Petroleum Company Limited (NNPCL) has initiated the supply of crude oil for the test-running of the Port Harcourt Refining Company Limited, as confirmed by NNPCL officials on Sunday.
Oil marketers have confirmed the development, stating that the Port Harcourt refinery will supply refined products, including Premium Motor Spirit (petrol), Automotive Gas Oil (diesel), and others, to 12 states, including Abia, Rivers, Akwa Ibom, and Delta. The ongoing test-running is expected to be completed shortly, with commercial production of refined products commencing soon.
Experts and downstream operators anticipate a reduction in the cost of refined products with the Port Harcourt and Dangote refineries starting operations. However, they note that this reduction may not lead to a massive price crash.
The Federal Government announced the mechanical completion of rehabilitation work on the Area-5 Plant of the Port Harcourt Refining Company on December 21, 2023. The first phase of the plant has been completed, and it is set to refine 60,000 barrels of crude oil daily.
Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), stated, “This heralds the commencement of the production of petroleum products after the Christmas break. We want to thank Nigerians for their patience and trust in the NNPC to deliver on our promise and mandate in the rehabilitation of our refineries.”
NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, confirmed the supply of crude oil to the refinery for testing. He assured that the test-running phase, focusing on various procedures, adheres to global best practices, and commercial production of refined products will commence shortly.
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The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, confirmed that the Port Harcourt refinery has started receiving crude oil. Testing is ongoing, and the 60,000 barrels per day crude oil production is expected to serve about 12 states in Nigeria.
The NNPCL, managing the refinery, revealed that the second phase of the facility would be completed in the fourth quarter of 2024, leading to the refining of 150,000 barrels per day of crude.
Oil marketers and experts anticipate a reduction in the cost of refined products with the commencement of operations at the Port Harcourt and Dangote refineries. The National Secretary of the Independent Petroleum Marketers Association of Nigeria, Chief John Kekeocha, emphasized that while the reduction may not happen immediately, it would positively impact prices downward.
