The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has announced that petrol prices are expected to drop significantly following the Federal Government’s revival of the Port Harcourt and Warri refineries.
In a statement issued on Saturday, PETROAN’s National Public Relations Officer, Dr. Joseph Obele, affirmed that, contrary to earlier skepticism, the refineries are “now fully operational, with PETROAN members actively loading petroleum products such as DPK, AGO, and PMS.”
“The resurgence of these refineries has sparked intense competition, which is expected to drive down petroleum prices. As Nigerians advocate for lower PMS prices, it is clear that competition is a crucial factor in triggering price reductions,” the statement read.
He highlighted that the revitalization of the refineries brings several benefits, including the elimination of adulterated diesel and kerosene from the market.
Dr. Obele expressed regret over the years of reliance on non-functional refineries, which resulted in the widespread availability of fake petroleum products, endangering consumers’ safety.
He noted that the demand for counterfeit products has significantly declined with the availability of genuine diesel and kerosene, thereby reducing the risks of explosions and equipment damage.
“The refineries’ functionality has also contributed to a decrease in crude oil theft, which has hindered Nigeria’s ability to meet OPEC production targets. As crude oil production increases, Nigeria is expected to generate more revenue and stabilize the naira.
“The revitalized refineries have created job opportunities, with deserted depots now bustling with activity. The host communities are also benefiting from empowerment programs, which are expected to positively impact insecurity and crime rates in the region,” he said.
According to PETROAN, the operationalization of the Port Harcourt and Warri refineries is also expected to boost Nigeria’s economic growth by increasing the availability of petroleum products, reducing dependence on imports, and generating additional revenue for the government.
He stated that the situation would have a positive impact on the country’s Gross Domestic Product (GDP) and overall economic development.
“Additionally, the refineries’ functionality will also enhance Nigeria’s energy security, reduce the pressure on foreign exchange, and create a stable supply chain for petroleum products. This will have a ripple effect on various sectors of the economy, including transportation, manufacturing, and agriculture, ultimately leading to improved economic productivity and competitiveness.”