Depot Owners Share New Findings About NNPC’s PH, Warri Refineries, as Fuel Prices Rise Again

• Depot owners have revealed that the NNPC’s Port Harcourt and Warri refineries are not producing petrol
• They explained that only the Dangote petroleum refinery located in Lekki is producing Premium Motor Spirit (PMS)
• The depot owners have raised concerns about the operation of the Dangote refinery, noting that it limiting access for many 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 Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has revealed that the Nigerian National Petroleum Company Limited (NNPC) refineries are not producing Premium Motor Spirit (PMS), also known as petrol.

The DAPPMAN noted that its members are currently unable to purchase from the refineries, citing their limited output of petrol-grade products.

Olufemi Adewole, DAPPMAN’s Executive Secretary, said that while the revamped Port Harcourt and Warri refineries are operational, they are primarily producing naphtha, not petrol, Punch reports.

He noted that the association’s members are turning to the Dangote Petroleum Refinery as their only viable source of locally refined PMS.

He said:

“The NNPC refineries, both the revamped Port Harcourt and Warri, are not yet optimally producing PMS; they are producing naphtha.

"Our members will not go to them for now. We are willing to buy from Dangote Refinery, but if we don’t get the product locally, the Petroleum Industry Act (PIA) allows us to import.”

Adewole explained that depot owners prefer bulk loading between 15 to 25 metric tonnes and want direct access to load vessels from Dangote’s facility.

However, he noted that the Dangote refinery has so far taken a selective approach, choosing a limited number of marketers and supplying them through its gantry system.

Adewole said"

“If the portal is open and we are allowed to load our vessels, then it’s a lot easier for us."

According to him, DAPPMAN members have depots across Nigeria’s coastal regions and are ready to lift PMS and diesel once terms are agreed.

While expressing pride in the Dangote facility, Adewole said depot owners are cautious about paying more than market value.

He said:

“We want to work with Dangote, but we are also not going to keep losing money because the bottom line is that we are in business."

NNPC says it is producing petrol

NNPC spokesperson Olufemi Soneye had earlier dismissed claims that the refinery was not producing PMS, stating that blending with Indorama Petrochemicals was standard global practice to meet fuel specifications.

He also said output would ramp up to 90%.

However, another report by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in April revealed that the Port Harcourt refinery was operating below 40% capacity.

It also confirmed that the Warri refinery had remained shut since January 25 due to safety concerns.

Depots increase petrol price

Earlier, Legit.ng reported that Depot owners have increased the price of Premium Motor Spirit (PMS), commonly known as petrol, by as much as N10 per litre across several petroleum corridors.

A week-on-week analysis of depot prices from May 12 to May 16 shows several adjustments, including from Dangote Petroluem refinery.

The Dangote Refinery, PMS rose to N837 per litre from N827, while AGO and LPG slipped to N937 and N865 respectively.

Source: Legit.ng