By Abiola Olawale
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has expressed concern regarding the current pricing of the Premium Motor Spirit (PMS), commonly referred to as fuel produced by the Port Harcourt refinery, which commenced operation on Tuesday.
The union highlighted a significant disparity, revealing that the cost of fuel produced at the Port Harcourt Refinery is higher than that produced by the Dangote Refinery which is owned by Africa’s richest and business magnate, Alhaji Aliko Dangote.
This was disclosed by the union’s Public Relations Officer, Dr. Joseph Obele, during the official reopening ceremony of the refinery, which is now operating at a capacity of 60,000 barrels per day.
Obele disclosed that the Port-Harcourt refinery is presently selling its fuel at a price of N1045 per litre. According to him, this amount is N75 more than the cost of fuel at the Dangote Refinery.
He said the N75 price differential is a steep margin for businesses, particularly for an industry where profitability hinges on competitive pricing.
The New Diplomat reports that the Port-Harcourt refinery in Alesa Eleme, southeast of Port Harcourt, Rivers State, has commenced production and it is currently operating at 70%, according to the Nigerian National Petroleum Company Limited (NNPCL).
The NNPCL in a statement issued by its Chief Corporate Communications Officer, Olufemi Soneye, revealed that the Port Harcourt refinery has begun production of Kerosene, diesel, and Liquefied Petroleum Gas, among others.
