Olufemi Soneye, the Chief Corporate Communications Officer of the Nigerian National Petroleum Corporation Limited (NNPCL), recently shared insights on the factors influencing petrol pricing in Nigeria and the anticipated impact of the Port Harcourt Refinery's revival. According to Soneye, market forces will continue to play a significant role in determining the price of Premium Motor Spirit (PMS) globally, and the revival of the Port Harcourt refinery will not directly lead to a reduction in fuel prices in Nigeria.
In his statement, Soneye acknowledged that while the refurbishment and operationalization of the Port Harcourt Refinery is a crucial step for Nigeria's oil sector, it won’t necessarily lower the price of petrol for consumers immediately. Instead, he emphasized that the main benefit of the refinery's revival would be enhanced supply security, allowing Nigeria to rely less on the importation of refined petroleum products.
Currently, Nigeria faces significant challenges in meeting its domestic fuel demand, relying heavily on imports to fill the gap. The Port Harcourt Refinery, once fully operational, will help reduce the country’s dependency on imported refined petroleum, thus strengthening Nigeria’s energy security. By increasing local production capacity, the refinery could also help shield the country from global supply shocks, which are often a contributing factor to price volatility.
However, Soneye made it clear that the global forces that influence fuel prices, such as international oil prices, supply-demand dynamics, and geopolitical factors, will still play the most significant role in shaping petrol costs. As such, the revival of the Port Harcourt Refinery will not automatically translate into lower petrol prices in the country. It will, however, contribute to stabilizing the supply chain, reduce the economic strain from fuel imports, and potentially improve the overall efficiency of the Nigerian petroleum sector.
For Nigeria, addressing its reliance on fuel imports has long been a major challenge. With a growing population and increasing demand for energy, the need for local refining capacity has become more critical than ever. The Port Harcourt Refinery, once it is back to full capacity, is expected to provide a substantial portion of the fuel required for domestic consumption, ensuring a more secure and predictable supply of PMS.
In conclusion, while the revival of the Port Harcourt Refinery may not lead to immediate reductions in petrol prices, its impact will be felt in terms of supply security and a reduction in Nigeria's reliance on imported fuel. By enhancing domestic refining capacity, Nigeria can take a crucial step toward energy self sufficiency, while global market forces continue to shape pricing decisions.