Oil Marketers Predict New Petrol Price as Port Harcourt Refinery Begins Operation
- Oil marketers have stated that the prices of petroleum products are set to crash when the Port Harcourt refinery begins operations
- The marketers revealed this in Akwa Ibom during an inauguration of the chapters of NOGASA and PETROAN
- The development follows the earlier assertion by the World Bank that the Nigerian government is partially subsidizing petrol
Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
Stakeholders in the Downstream Petroleum sub-sector from the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) have revealed that the prevailing challenges in the oil sector would end when the Port Harcourt refinery begins operation next month.
NOGASA's National President and Chairman, Board of Trustees (BoT), Kenneth Korie, and PETROAN President, Billy Harry, stated this after the inauguration of the Akwa Ibom chapters of the two bodies.
Source: Getty Images
NNPC MD assures of price stability after Port Harcourt refinery begins working
They revealed optimism that petrol prices would crash when the refineries begin functioning.
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Leadership reports that Korie said the NNPC Group Managing Director, Mele Kyari, has assured Nigerians during his appearance at the National Assembly that prices would moderate immediately after the refineries begin functioning.
He said he is optimistic that there would be a reduction in petrol prices as soon as the refineries come onstream., stating that Nigerians should not expect a crash in petrol prices so more quickly as the Dangote refinery begins operation.
World Bank projects new petrol price
The development comes as the World Bank hinted that the Tinubu-led administration has partially reintroduced petrol subsidy payments.
According to Alex Sienaert, the global bank's lead economist for Nigeria, the current petrol price in Nigeria at 650 does not reflect a subsidy-free regime.
He made this known while presenting the Nigeria development update report, the December 2023 edition.
The report, titled, 'Turning The Corner (From Reforms and Renewed Hope to Results)", was presented on Wednesday in Abuja.
Punch reports that during Sienaert's presentation, he noted that based on the official naira exchange rate, petrol should sell for around N750 per litre, not the N650 currently being paid by Nigerians.
World Bank recommends new petrol price
Sienaert also said that the bank recommends Nigeria's government take additional steps to safeguard the benefits of its bold reforms.
Since the federal government announced the removal of the petrol subsidy, concerns have been raised over the lack of correlation between pump prices in the country and international crude oil prices and exchange rates.
At the event, Festus Osifo, the national president of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), collaborated with the World Bank, noting that the federal government is still paying subsidies on petrol.
“No More N610/L:” Nigerians brace for fuel price reduction as petrol vessels arrive at ports
Legit.ng reported that oil marketers stated on Saturday, November 18, 20023, that the price of petrol may drop across filling stations owned by independent marketers this week following the imports of PMS by the Nigerian Independent Petroleum Company Limited (NNPCL).
Feelers show that the recent hike in petrol prices at outlets owned by independent marketers was due to the short supply of the product, leading to profiteering by depot owners and filling stations.
However, operators in the downstream sector revealed that several cargoes imported by NNPCL arrived, some of which are currently discharging at the ports, a Punch report said.
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Source: Legit.ng
