Barring any last-minute changes, marketers and retailers of petroleum products are expected to begin lifting Premium Motor Spirit (PMS), commonly known as petrol, from the Port Harcourt Refining Company this week.
The Publicity Secretary of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) Joseph Obele, revealed this development in an interview with journalists. Since its reopening in November, the Port Harcourt refinery had only been supplying fuel to retail outlets owned by the Nigerian National Petroleum Company Limited (NNPCL), with marketers still sourcing their fuel from NNPCL but with the products being imported.
Obele raised concerns over the current price disparity, noting that NNPCL is selling PMS to retailers in Port Harcourt at a higher price compared to Lagos. While the price of petrol in Lagos stands at N899 per litre, it is being sold at N970 per litre in Port Harcourt due to perceived logistical challenges. Marketers in Port Harcourt, according to Obele, are uncomfortable with this price difference and are requesting that the refinery sell petrol at the same rate it is offered to Lagos retailers.
“NNPC is still telling us to buy at a rate different from what they are selling in Lagos because of logistics. Therefore, Port Harcourt retail outlet owners are not comfortable with that. Hence, we expect that the Port Harcourt refinery will start supplying us this week,” Obele stated.
The PETROAN spokesperson clarified that although the Port Harcourt refinery had resumed operations, as of now, marketers had not yet begun buying directly from the refinery. He further emphasized that the trucks currently loading products are still serving NNPCL’s retail outlets only.
Obele also reiterated the association’s request for price parity: “We plead with the NNPC to sell to us at the same rate they are selling to Lagos marketers. The difference is too much. It is N899 per litre in Lagos, but N970 in Port Harcourt. This is far higher than Lagos, and it is not comfortable for us.”
He further explained that, unlike the Lagos supply, the products in Port Harcourt would be sourced directly from the refinery, removing the need for imports. “Since you will be selling directly to us from the refinery, we now expect to buy at the same price as Lagos,” he added.
In response to a question about whether NNPC was still importing fuel into Lagos, Obele confirmed that the stocks in Lagos were imported.
After several delays, NNPC had announced the resumption of operations at the 60,000 barrels per day Port Harcourt refinery in November. The state-owned oil company also assured that work on the larger 150,000 barrels per day refinery would soon be completed.
NNPC spokesman, Olufemi Soneye, confirmed that the refinery is currently producing naphta, which is then blended to produce petrol.
