NNPC Clarifies Status Of PH Refinery As Depots Release New Fuel Prices

• The NNPC has confirmed that the PH refinery is fully operational despite reports of fire incidents at the facility
• The refinery, which can refine 210,000 barrels per stream day (bpd), is seen as a challenger to Dangote refinery's market share
• The development comes amid a decision by depot owners to increase the price of fuel sold to marketers

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Nigerian National Petroleum Company Limited (NNPCl) has confirmed that the Port Harcourt Refining Company (PHRC) remains operational.

The clarification comes amid reports of an explosion at the PH refinery facility in some sections of the media (Legit.ng not included).

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In a statement released on X, Olufemi O. Soneye, NNPC Limited's chief corporate communications officer, reassured the public that the refinery continues to produce refined petroleum products at full capacity

The statement reads:

"The Nigerian National Petroleum Company Limited (NNPC Ltd) wishes to clarify that despite a minor incident at a section of the Port Harcourt Refining Company (PHRC) earlier today, the plant remains operational and continues to produce on-spec refined petroleum products.

NNPC Ltd assures the public that there is no cause for concern, as all sections of the recently rehabilitated plant are in full operation."

New fuel prices at depot

Meanwhile, data from BusinessDay indicated that fuel prices at loading depots have increased following the decision by the Dangote refinery to stop the sale of petrol in naira.

The price of petrol for marketers increased from N852 per litre to N875 and this is expected to affect the retail price of petrol.

Here is a snapshot of depot petrol prices :

• Matrix Warri increased its price from N852 to N875 per litre.
• Zamson Depot raised its price from N853 to N875 per litre.
• Rainoil adjusted its price from N853 to N875 per litre.
• Pinnacle Warri and Sobaz set their prices at N875 per litre, up from N854 and N870, respectively.

Dangote suspends petrol sale in naira

The Dangote Group recently announced a temporary suspension of petroleum product sales in naira.

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The refinery cited a mismatch between its sales proceeds and crude oil purchase obligations, which are currently denominated in US dollars.

Dangote Group said in a statement on X said:

“Dear valued customers, we wish to inform you that the Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira. This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars."

The refinery further dismissed online reports alleging a halt in loading operations due to ticketing fraud, calling such claims “a malicious falsehood."

The statement added:

“Our systems are robust, and we have had no fraud issues. We remain committed to serving the Nigerian market efficiently and sustainably. As soon as we receive an allocation of naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in naira."

Petrol price increase looms

Earlier, Legit.ng reported that oil marketers issued a warning that fuel pump prices could increase in the days ahead.

Chinedu Ukadike, public relations officer for the Independent Petroleum Marketers Association of Nigeria (IPMAN), the cost of obtaining foreign currency to pay for the product would probably increase pump prices.

Since the dollar has now become the currency of exchange in Nigeria, he noted, marketers may also turn to selling their petroleum products in dollars.

Proofreading by James Ojo, copy editor at Legit.ng.