Competition Between Dangote Refinery And Port Harcourt Refinery Will Lead To Price Reduction – IPMAN

Stakeholders in the oil and gas industry have expressed optimism that the commencement of production at the Port Harcourt Refining Company will drive competition, reduce the pump price of petroleum products, and create job opportunities for Nigerians.

Speaking on Tuesday, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, inaugurated a 60,000-barrel-per-day capacity plant at the old Port Harcourt Refinery Depot.

Kyari assured Nigerians that other sections of the refinery would be completed in due course.

The resumption of production has been lauded as a significant milestone in Nigeria’s efforts to strengthen its downstream petroleum sector.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) described the refinery’s operation as a game-changer.

The Chairman of IPMAN in Rivers State, Tekena Ikpaki, commended the achievement while addressing newsmen, saying, “The coming on stream of the Port Harcourt Refinery is a remarkable achievement. This development will enhance product availability, reduce costs, and boost employment in the sector.”

Other stakeholders echoed similar sentiments, highlighting the potential for the refinery to stabilize the supply chain, reduce reliance on imported petroleum products, and ensure competitive pricing.

Ikpaki stated, “This will remain memorable in our lives and in our hearts because it has been long expected.

“Now it is no longer expected, it is real, it can be seen and felt. Trucks have been coming in and loading out and we have been witnessing the process.”

Asked what the operation of the Port Harcourt Refinery and the Dangote Refinery together mean for the downstream sector, he said it would engender competition and reduce the cost of petroleum products.

Tekena stated, “You know in God’s time He makes all things beautiful and this is just the best thing that will happen to Nigerians. I mean there is super competition now in the system which is in favour of the entire Nigerians.

“When Dangote and the NNPCL are at loggerheads and they are competing, who enjoys the dividends? Of course you and I. So I believe that since the refinery has come on stream, Dangote is there too, it will further push down the price of products.

“Over the weekend, Dangote had announced price reduction both on the marine and trucking, coming from perhaps the resumed operation of the Port Harcourt Refinery. So I think price reduction will be experienced and it will be in our favour and the favour of Nigerians.”

While expressing the optimism that more trucks are expected to come into the facility to load products in the coming days, saying the event of Tuesday was a test run.

“Yes because it is still a test run. You know the place (Refinery) has been moribund for some time. For now, it is still hypothetical but in no distant time everything will be in its proper place and the inflow of trucks will be seen again the way it used to be,” the Rivers State IPMAN Chairman said.

On its part, the Petroleum Product Retail Outlet Owners Association of Nigeria said the commencement of production after five years will create job opportunities, boost the nation’s economy and bring about competition in the downstream sector.

The National Public Relations Officer of PETROAN, Joseph Obelle said this also corroborated the opinion of IPMAN that it will lead to a reduction in the price of Premium Motor Spirit also known as Petrol.

Obellei further said the association will continue to work with the management of the NNPCL, retail management and other stakeholders to ensure that products lifted at the Port Harcourt Refinery depot are well distributed to all nooks and crannies of the nation.

He commended President Bola Tinubu and the management of the NNPCL for their commitment to reviving the refinery.

He added, “PETRAON expresses optimism for the commencement of production at the Port Harcourt Refinery.

“We are so sure that it will offer job opportunities, boost the economy of the country and trigger competition in the downstream sector which we reflect significantly to price reduction.

“We want to commend the leadership of the NNPC led by the Group CEO, Mele Kyari for demonstrating leadership with his team towards seeing the Port Harcourt Refinery becoming a reality.”

Obelle added, “Funding would have been an issue if not for the determination of Mr President. So we also commend President Bola Tinubu for releasing funds for the Port Harcourt Refinery rehabilitation”

He lauded the host communities for providing a peaceful atmosphere for the rehabilitation of the refinery and called on the company handling the reconstruction of the Eleme section of the East-West Road to ensure speedy completion of the road for smooth movement of trucks carrying petroleum products from the refinery to other parts of the country.

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