Marketers Projects Price Reduction
The Nigerian National Petroleum Company Limited (NNPCL) has achieved a significant milestone with the commencement of operations at the Warri Refining and Petrochemicals Company Limited (WRPC). This development is expected to boost Nigeria’s energy security, drive down the prices of refined petroleum products, and cushion the demand for dollars to import fuel.
The WRPC, which has been under rehabilitation since 2021, has started producing straight-run kerosene, diesel, and naphtha. The refinery is expected to produce gasoline once the second part of the facility comes on stream. The NNPCL Group Chief Executive Officer, Mele Kyari, stated that the restart of the Warri refinery will help the nation become a net exporter of petroleum products, with some of these products being sent to the international market.
The development comes barely a month after the commencement of operations at the 60,000 barrels per day-old Port Harcourt Refinery in Rivers State. The Kaduna refinery is also expected to come on stream soon. The NNPCL spokesperson, Olufemi Soneye, had earlier stated that the mechanical completion of the Warri refinery was scheduled for the first quarter of 2024.
The National Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mustapha Zarma, said the competition in the downstream oil sector is now going to intensify, forcing down refined petroleum products’ prices. “Certainly, there is going to be a further drop in prices once the facility starts pumping out products in large volumes. This is because there is going to be a lot of competition, and the market will be driven by market forces at the end of the day,” he added.
The Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Ahmed Farouk, stated that the new refinery would drive down the price of petroleum products in Nigeria. He added that investors were building modular refineries, which would benefit Nigerians.
The Secretary of IPMAN, Abuja-Suleja, Mohammed Shuaibu, stated that aside from reducing the prices of refined products, the commencement of operations of the Warri refinery would cushion the dollar demand for fuel imports. “Nigerians are happy, and we marketers are too, because I know that with this development, the prices of refined products in Nigeria will continue to go down,” he said.
Kindly share this news!!!