Port Harcourt Refinery Resumes Scaled Operations Amid Pricing Controversy
The Port Harcourt Refining Company (PHRC) has resumed operations on a limited scale as part of ongoing facility upgrades, the company confirmed on Sunday. However, controversy brews as marketers resist purchasing fuel at the reported price of ₦1,030 per litre, citing concerns over affordability and market competitiveness.
Operations Resume with Adjustments
The PHRC clarified that operations were not entirely halted but reduced to accommodate technical improvements aimed at enhancing efficiency. During a media tour, Ibrahim Onoja, Managing Director of PHRC, highlighted the upgrades, including replacement of equipment and improved loading capacity.
“So, the operations were not halted. It was obviously reduced due to some improvements that we needed to make,” said Moyi Maidunama, Executive Director of Operations at the Nigerian Pipeline and Storage Company Limited.
Terminal Manager Worlu Joel confirmed that product distribution, including Premium Motor Spirit (PMS), kerosene, and diesel, had begun, although tanker drivers’ turnout remained low. Despite this, he assured that the facility could handle significant volumes efficiently, with functional loading arms operating at high capacity.
Marketers Reject ₦1,030 Price Tag
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed opposition to purchasing fuel at ₦1,030 per litre, a price reportedly associated with the PHRC’s PMS. IPMAN spokesperson Chinedu Ukadike argued that fuel from a domestic refinery should be cheaper than imported options or the Dangote Refinery’s products, which are sold at lower rates.
“If the Port Harcourt refinery’s PMS price is truly ₦1,030, it is unacceptable to us independent marketers. We will not buy from them,” Ukadike stated, urging the Nigerian National Petroleum Company Limited (NNPCL) to review the price.
NNPCL has denied setting this price for PMS but refrained from disclosing an official rate, stating that pricing is adjusted periodically based on operational realities.
Concerns Over Blended Fuel
The Crude Oil Refineries Owners Association of Nigeria (CORAN) raised questions about the refinery’s decision to blend naphtha with cracked C5 to produce petrol, citing environmental and quality concerns. According to CORAN spokesperson Eche Idoko, while blending could lower production costs, it might compromise fuel standards and sustainability if key feedstocks are imported.
Energy consultant Henry Adigun estimated that PHRC’s blended PMS should cost between ₦860 and ₦870 per litre, significantly lower than the contentious ₦1,030 rate. Adigun explained that the facility is not yet capable of producing standard petrol directly and relies on blending to meet specifications.
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Next Steps for PHRC
PHRC maintains that the ongoing improvements are part of a broader plan to ensure long-term efficiency and reliability. Managing Director Onoja assured stakeholders that the plant is operational and distribution will remain consistent, even as challenges are addressed.
Meanwhile, marketers and industry observers await a formal review of fuel pricing to determine whether PHRC’s products can achieve competitive affordability in the local market.
