Huge relief as Port-Harcourt refinery kickoff set to cut fuel prices

In a relief to individuals, businesses, and logistics operations across Nigeria, stakeholders in the downstream petroleum sector are predicting a significant reduction in fuel prices with the expected resumption of the Port Harcourt refinery, which will cut transportation cost significantly.

The assurance was resounding in statements from Kenneth Korie and Dr Billy Harry. Two of the most important figures in the petroleum industry in Nigeria. Kenneth Korie is the National President and Chairman of the Board of Trustees of NOGASA, and Dr. Billy Harry is the head of PETROAN.

What are these stakeholders promising?

The two industry leaders expressed confidence that lower petrol prices Nationwide can be expected. Now, businesses and individuals can enjoy lower or reasonably priced transportation costs. But more importantly, it is the first step in getting the crises in the energy sector under control.

Korie attributed the current increase in fuel prices to the cost of importation. And emphasized the importance of rehabilitating and upgrading the refineries in Port Harcourt, Kaduna, and Warri to bring down the prices. “I’m 100% sure that there will be a serious reduction in the price of petroleum products as soon as our four refineries, including the Dangote Refinery, come up” he said.

Although he sounded a warning to Nigerians not to expect a return to the previous prices. This is because importation will continue even amid the high exchange rate. However, relief is imminent for Nigerians.

Dr. Billy Harry of PETROAN emphasized the significance of kicking off operations at the Port Harcourt Refinery in January. And stressed the need for collaboration between regulatory bodies and industry stakeholders to overcome challenges in the sector.

He believes that is the key to restoring affordable prices for petroleum products. Harry sees the synergy between retail outlet owners and suppliers as a game-changer that will positively impact the downstream sector.

How will the refinery operations reduce fuel prices?

There are two key reasons for the high fuel prices: importation costs and high exchange rates. The return of operational activity at the Port-Harcourt refinery will help reduce the importation of fuel. This will also produce local competition for the importers, which will ultimately drive down prices.

The stakeholders believe that the Port Harcourt Refinery’s return to service, along with the rehabilitation of other refineries, will contribute to stabilizing fuel prices. This development aligns with broader efforts to enhance the sustainability of the downstream petroleum sub-sector.

The optimism expressed by NOGASA and PETROAN leaders signals a positive outlook for the downstream petroleum sector in Nigeria. Resuming operations at the Port Harcourt Refinery will play a crucial role in addressing challenges within the energy sector.

If promises are kept, and expectations met, there is optimism for a more affordable and sustainable future for petroleum products in the country.