The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed optimism that the Port Harcourt refinery will commence operations in August, as scheduled. This development is expected to significantly enhance the country’s petrol supply, with a daily output of 10 to 12 million liters.
Zarma Mustapha, IPMAN’s National Operations Controller, confirmed that the refinery is on track to meet its deadline, operating independently and selling at market-determined prices. This approach marks a departure from the traditional government-controlled pricing mechanism, which has been criticized for its inefficiencies.
Mustapha emphasized that the refinery’s operation will bolster the nation’s energy security, reducing reliance on imported petroleum products. This, in turn, will help to stabilize the economy, which has been negatively impacted by the high cost of fuel imports.
“There is this understanding that the Port Harcourt refinery is going to perform independently and sell at whatever prevailing market price for them to recover their cost. It’s not going to run like a government entity as it has before,” Mustapha said.
However, he acknowledged that previous deadlines have been missed, casting a shadow of doubt over the current timeline. Despite this, Mustapha expressed confidence that the refinery will meet its August deadline, citing the significant progress made in the refurbishment process.
The Port Harcourt refinery, one of Nigeria’s four state-owned refineries, has faced numerous challenges, including funding issues, technical problems, and political disagreements. Despite these obstacles, NNPC’s Mele Kyari has reaffirmed that the refinery will commence operations in August, with the remaining three refineries in Kaduna and Warri expected to follow suit in 2025.
The refinery’s refurbishment has been made possible by a $1.5 billion loan from an African financial institution. Mustapha noted that the loan will be repaid through the refinery’s earnings, which are expected to be substantial given the high demand for petroleum products in the country.
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While the refinery’s operation may lead to a reduction in petrol prices, Mustapha cautioned that this depends on various factors, including the cost of crude oil and the refinery’s pricing strategy. He noted that the refinery will need to balance its desire to reduce prices with the need to recover its costs and generate profits.
It bears mentioning that the successful operation of the Port Harcourt refinery is seen by those close to the matter to be crucial for Nigeria’s energy independence and economic stability. IPMAN’s assurance has raised hopes for many Nigerians that the country may finally achieve its long-awaited goal of refining its own petroleum products, rather than relying on imports.
