Emmanuel OchayiThe are concerns over the delayed launch of refined products from the Port Harcourt Refining Company. This is as the local currency the naira witness further depreciation both at official and parallel markets.
The Federal Government has, however, addressed those concerns. The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, in a press briefing on Wednesday, assured the public that the refinery was still undergoing test runs, emphasizing the complexity of the mechanical aspects that needed finalization before production could commence.
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Contrary to the government’s initial announcement of the refinery’s operation after the Christmas break, Lokpobiri acknowledged the ongoing tests and drew parallels with the Dangote Refinery, highlighting the time required for such intricate facilities to start releasing products. The minister expressed optimism about the refinery and other projects significantly increasing Nigeria’s refining capacity in the coming months.
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However, concerns were raised by oil marketers regarding the impact of the recent crash of the naira against the dollar on pump prices. With the exchange rate now at approximately N1,450 to a dollar, worries emerged about the Nigerian National Petroleum Company Limited’s ability to sustain the current cost of supplying Premium Motor Spirit (PMS or petrol). Chief Ukadike Chinedu, the National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, suggested that the rise in dollar exchange rate might lead to an imminent hike in PMS prices.
Lokpobiri acknowledged the challenges posed by the exchange rate but commended the NNPC for its efforts in providing PMS. He highlighted the broader strategy, including the ongoing modular refineries program, aiming to significantly boost refining capacity and address Nigeria’s energy needs while supplying refined products to West Africa.
As Nigeria navigates economic complexities, the fate of PMS prices remains uncertain, contingent on both international factors and the successful commissioning of the Port Harcourt Refinery.
