April 20, 2024
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OIL & GAS RENEWABLE ENERGY

IPMAN Foresees Potential Fuel Price Reduction with Port Harcourt Refinery Operation, AROGMA Skeptical, Tells Energy Afrique

The National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, has indicated a potential decrease in the pump price of petrol following the anticipated operationalization of the Port Harcourt refinery.

Maigandi revealed during a meeting with Mele Kyari, the Group Managing Director of the Nigerian National Petroleum Company Limited (NNPCL), that once the refinery becomes operational and marketers commence loading fuel from there, there will likely be a nominal reduction in the price of fuel.

He emphasized that IPMAN members, particularly those in the South-South region, have been instructed to prepare for loading as soon as the refinery starts operations. Maigandi highlighted the expectation for a change in price, albeit minor, with the availability of locally refined products serving as support to imported ones.

Additionally, Maigandi welcomed the potential employment opportunities the refinery’s operations would bring, expressing optimism about the refinery’s promised commencement within the next two weeks.

However, Bashir Danmallam, Chairman of AROGMA, expressed skepticism regarding the possibility of a price reduction. Danmallam argued that since the government would provide crude oil to the refinery at international market rates, the price reduction might not be significant.

Furthermore, Danmallam pointed out regional disparities in fuel prices, citing higher prices in northern Nigeria compared to other parts of the country. He suggested reinstating fuel subsidies as a potential solution to alleviate the cost burden.

The contrasting viewpoints between IPMAN and AROGMA highlight divergent expectations regarding the impact of the Port Harcourt refinery’s operations on fuel prices and market dynamics. Danmallam’s remarks were made during an interview with Energy Afrique, underscoring the complexity of the ongoing discussions within the Nigerian petroleum industry.

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