The reopening of the Port Harcourt Refinery has sparked fresh debates among Nigerian oil marketers, who are urging a review of petrol prices to remain competitive. As it stands, the Nigerian National Petroleum Company Limited (NNPCL) sells petrol to marketers at ₦1,045 per litre, while Dangote Refinery offers the same product at ₦970 per litre, creating a ₦75 per litre difference.
Price Disparity and Its Impact
The significant price gap has led many independent petroleum marketers to shift their focus towards sourcing from Dangote Refinery. For marketers, even minor price variations can have substantial implications on their profit margins.
A representative from the Independent Petroleum Marketers Association of Nigeria (IPMAN) highlighted that every discount matters, stating, “A businessman appreciates even one kobo as a discount. The current situation leaves us at a disadvantage when competing with those sourcing from Dangote.”
NNPCL’s Commitment to a Price Review
NNPCL’s Group Managing Director (GMD) acknowledged the concerns raised and promised to address the issue. Marketers are hopeful that an imminent price review will help level the playing field and reduce traffic congestion at Dangote’s outlets.
Port Harcourt Refinery’s Role in Price Stability
The Port Harcourt Refinery, which recently resumed operations at 60% capacity, processes 60,000 barrels of crude oil daily. Its reopening is expected to boost local fuel supply and ease the pressure on imports, potentially stabilising prices in the long run.
Looking Ahead
As NNPCL works on adjusting its pricing strategy, the hope is that fair competition will foster a more stable fuel market. For now, marketers remain optimistic about a review that could provide much-needed relief and enhance profitability.
This development underscores the importance of aligning local refinery pricing with market realities to support Nigeria’s energy sector and ensure competitive fairness.