“$1,500/$”: Oil Marketers Speculate New Petrol Price as FG Provides Update on Port Harcourt Refinery

• Oil marketers have disclosed that there may be a hike in the price of petrol.
• The Spokesman for the Independent Petroleum Marketers Association of Nigeria (IPMAN) said petrol prices might rise due to the current forex crisis
• The development followed a statement by the Federal government that the Port Harcourt Refinery was still undergoing a test run

Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.

The National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Ukadike Chinedu, has stated that the price of petrol might rise following the crash of the naira against the dollar.

The IPMAN spokesman said it is likely that Nigerians may see a hike in the price of the commodity as inflation and scarcity of Forex persist.

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Petrol prices might rise as the naira crashes

“We commend the NNPC for being able to provide PMS, but the truth is that the rise in the dollar is affecting every commodity in Nigeria, and PMS might not be an exemption soon. So it is likely that we may see a hike in its price,” he stated.

The development comes as the Nigerian government revealed on Wednesday, January 31, 2024, that the Port Harcourt Refinery was still undergoing a test run and that products from the facility will soon hit the market.

During a press briefing in Abuja, the government disclosed this as oil marketers expressed concern that the local currency crash against the dollar might cause an increase in petroleum product prices.

They wondered how the Nigerian National Petroleum Company Limited (NNPCL) would continue to supply petrol at the current cost as the recent foreign exchange stands at N1,450 per dollar.

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FG: Port Harcourt refinery still undergoing test run

The minister of Petroleum Resources (Oil), Heineken Lokpobiri, said the Port Harcourt Refinery was still experiencing a test run.

The Nigerian government said on December 21, 2023, that the mechanical work on the Area-5 Plant of the facility has been completed.

After last Christmas, the government said the plant will soon start refining 60,000 barrels of crude oil.

Lokpobiri said:

“The mechanical aspect of the Port Harcourt refinery has been completed, and they are still test-running. Yesterday, the MD of the refinery was here because I had to ask him what was happening.

“These were projects fundamental to our economic survival, and I believe that products will soon start coming from there. However, several components in that gigantic structure will take time mechanically to finalise for products to start coming.

Punch reports that the minister revealed further that in the next few months, Nigeria will increase its refining capacity, noting that Nigeria would be able to solve its energy needs and supply refined products to West Africa.

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NNPC announces date for Port Harcourt Refinery to complete test run

Legit.ng reported that the Nigerian National Petroleum Corporation Limited (NNPCL) said the test run for the Port Harcourt refinery would be completed this month.

This is a significant step to resuming operations five years after the refinery shut down.

The company’s spokesman, Femi Soneye, disclosed on Thursday, January 4, 2024, that testing would conclude shortly.

Source: Legit.ng