By Ono Yima
Maurice Ibe, an Oil and Gas Industry Consultant, has called on the Nigerian National Petroleum Company Limited (NNPC Ltd.) to ensure that the country’s four government-owned refineries operate at full capacity.
Ibe, who is the Group Executive Chairman of the Benham Group, made this statement during an interview with the News Agency of Nigeria (NAN) in Abuja on Saturday.
He stressed that a fully functional refining system is critical for achieving a significant reduction in petroleum product prices in Nigeria. He noted that until the Port Harcourt, Warri, and Kaduna refineries are operating optimally, the nation would remain heavily reliant on the privately owned Dangote Refinery.
“The Port Harcourt Refinery is functional, but the truth is that it is not producing at full capacity to impact pump prices meaningfully,” Ibe said. “We hope that, over time, it will produce sufficiently for independent petroleum marketers and private petroleum dealers to load products.”
He explained that a fully operational refinery should load at least 200 trucks, each carrying 50,000 liters of fuel, daily. According to Ibe, achieving this capacity would reduce pump prices not only in Port Harcourt but also in Aba, Owerri, Umuahia, Enugu, and across the country.
“Since the Port Harcourt Refinery resumed operations, it has loaded fewer than 10 trucks daily, which is far below expectations,” he added. “If it were functioning at 70% capacity, at least 50 to 60 trucks would be loading daily.”
Ibe, a consultant to the Independent Petroleum Marketers Association of Nigeria (IPMAN), emphasized the need for government refineries to work optimally to alleviate the suffering of Nigerians. He stated that while the Dangote Refinery is contributing significantly to the sector, relying solely on a private refinery could pose challenges due to its pricing being driven by production costs.
“The Petroleum Industry Act (PIA 2021) deregulated the industry, allowing market forces to determine prices,” he explained. “However, for Nigerians to feel the impact of reduced pump prices, government refineries must operate at full capacity.”
Speaking on the recently adjusted ex-depot price of ₦899, Ibe noted that while the drop followed announcements by two refineries, the effects have not yet been felt, as IPMAN marketers are yet to load products at the new price.
He highlighted that the government needs to compel NNPC Ltd. to ensure the functionality of the refineries. “Dangote Refinery is doing its best, but the government must push NNPC Ltd. harder to make the other refineries fully operational,” he said.
The old Port Harcourt Refinery, which resumed operations on November 26 with 70% operational capacity, has begun producing Premium Motor Spirit (PMS), Household Kerosene (HHK), Automotive Gas Oil (AGO), and Low Pour Fuel Oil (LPFO). However, Ibe insists that its current output is insufficient to create a meaningful impact on fuel prices nationwide. He concluded by reiterating that competition among refineries is essential for driving down fuel prices and meeting the needs of Nigerians effectively.