Dr Maurice Ibe, an Oil and Gas Industry Consultant has tasked the Nigerian National Petroleum Company Limited (NNPC Ltd.) to ensure that the four government refineries are functioning at full capacity.
In an interview yesterday – Saturday, December 28 – with the News Agency of Nigeria (NAN), in Abuja, the FCT, Ibe who is the Executive Chairman of the Benham Group, said that without an effective and functional refining system, it would be practically impossible for Nigerians to witness a reasonable drop in petroleum prices in the foreseeable future.
According to him, until the Port Harcourt, Warri and Kaduna refineries start working optimally and producing at full capacity, the country would still be dependent on Dangote refinery, pointing out that the turnaround and functioning of the refineries would create competition in the sector and ensure fuel pump price reduction.
“The Port Harcourt Refinery is functional, but the truth of the matter is that it is not producing at full capacity to enable us to have the level of impact that it should have on pump prices.
“We are hoping that with time, it will start producing well enough for independent petroleum marketers to load, including every other private petroleum dealer.
“If it is functional at full capacity, there is no way we will not be seeing an average of 200 trucks rolling out of the refinery every day,” he said.
The expert, who is also a consultant to the Independent Petroleum Marketers Association of Nigeria (IPMAN), highlighted some basic yardstick and parameters to measure a functional refinery, explaining that a functional refinery firstly, must have the capacity to load at least 200 trucks of 50,000 litres of fuel daily.
He added that if the Port Harcourt refinery were producing at full capacity, pump prices would have dropped in Port Harcourt, Aba, Owerri, Umuahia, Enugu and nationwide.
“Irrespective of what the NNPC Ltd. and dignitaries are saying concerning the refinery, the fact remains that the basic yardstick to measure the success or productivity of the refinery is still lacking,” Ibe contended.
“There have been some loadings from the refinery but it has not loaded more than 10 trucks daily since it resumed. I have my members on the ground.
“If it were working at 70 per cent capacity, there is no way we would not be having at least 50-60 trucks loading per day.
“The independent petroleum marketers have more fuel stations across the country than the major marketers and NNPC Ltd. too.
“No matter what it loads, if the IPMAN whom I consult for has not started loading, you cannot make an impact nationwide.
“Dangote Refinery is doing its best but the government needs to come down a little hard on the NNPC to ensure the rest of the refineries are functional for Nigerians to feel the impact of reduced pump prices.’’
He said Dangote, as a private refinery, would set prices based on cost of production, hence, the country should not fully be dependent on the refinery, explaining that since the sector is being operated under a Petroleum Industry Act (PIA 2021), which has deregulated the industry, through subsidy removal, products are now sold based on market forces.
“But to help alleviate the suffering of Nigerians, government refineries must work at full capacity,’’ Dr. Ibe stressed.
Speaking on the new ex-depot price of N899, he said though the ex-depot price dropped following the downward reviewed prices announced by the two refineries, the IPMAN was yet to start loading according to the news prices, pointing out that the new prices would reflect at the filling stations once the marketers load new products.
It would be recalled that the old Port Harcourt refinery, producing at 70 per cent operational capacity, began trucking out petroleum products, including Premium Motor Spirit (PMS, Household Kerosene (HHK), Automotive Gas Oil (AGO) and Low Pour Fuel Oil (LPFO), on Nov. 26 – a little more than a month ago.
