The Port Harcourt Refining Company (PHRC) has resumed limited operations, supplying Premium Motor Spirit (PMS), kerosene, and diesel while undergoing technical upgrades to enhance the facility’s performance.
Reduced Operations for Upgrades
PHRC Managing Director Ibrahim Onoja announced that operations have been scaled down temporarily for critical enhancements but assured consistent product distribution during this period. Terminal Manager Worlu Joel confirmed the refinery’s capacity to handle large volumes and noted surplus availability, although distribution rates have been hindered by a low turnout of tanker drivers.
Marketers Reject N1,030/Litre PMS Price
Independent petroleum marketers have rejected a rumored price of N1,030 per litre for PMS, deeming it uncompetitive and unsustainable. The Independent Petroleum Marketers Association of Nigeria (IPMAN) spokesperson, Chinedu Ukadike, emphasized that marketers would prefer cheaper alternatives, such as supplies from the Dangote Petroleum Refinery, until a price review is conducted.
Expert Insights on Pricing
Energy consultant Henry Adigun suggested that PMS from the PHRC should cost between N860 and N870 per litre, given that it is currently producing straight-run gasoline—a semi-finished product that requires further blending to meet quality standards. However, the Crude Oil Refineries Owners Association of Nigeria (CORAN) raised concerns about potential environmental and sustainability issues associated with blending, especially if imported feedstocks are used.
NNPCL’s Position on Distribution and Pricing
The Nigerian National Petroleum Company Limited (NNPCL) clarified that the refinery’s output is currently reserved for its retail outlets. The company also noted that pricing will be adjusted periodically to align with operational realities and market dynamics.
Industry Implications
This phased resumption of operations at PHRC marks a critical step in the refinery’s journey toward full operational capacity. However, the pricing dispute underscores broader challenges in balancing affordability, competitiveness, and operational costs in Nigeria’s refining sector.
The debate over PMS pricing and blending practices continues to shape discussions on the sustainability and efficiency of domestic refining in the country.
