The Petroleum Products Retail Outlet Owners Association of Nigeria, known as PETROAN, has announced that its members are now able to obtain petroleum products directly from the Port Harcourt and Warri refineries. This is a significant update because there were earlier concerns that these refineries, which belong to the Nigerian National Petroleum Company Limited, were not working properly.
Joseph Obele, a representative of PETROAN, shared this information in a statement over the weekend. He said that members of PETROAN can now load various petroleum products, including Dual-Purpose Kerosene (used in some stoves and heating), Automotive Gas Oil (also known as diesel), and Premium Motor Spirit (commonly known as petrol or gasoline).
Obele further explained that the Port Harcourt refinery is already supplying petrol, diesel, and kerosene to retailers. In contrast, the Warri refinery is currently providing only diesel and kerosene.
He highlighted that the reopening and functioning of these two refineries have created a tough environment for competition in the market, which may help lower fuel prices for consumers. As many Nigerians have been calling for lower prices on petrol, this competition is seen as a key factor that could lead to price drops.
Moreover, the revival of these refineries has brought additional benefits, such as the reduction of fake or poor-quality diesel and kerosene products in the market. Obele pointed out that before the refineries became operational again, consumers faced risks from these substandard products, which could cause accidents and damage to vehicles or machinery.
The spokesperson also mentioned that with the availability of genuine diesel and kerosene, the demand for counterfeit products has decreased, lessening the dangers associated with these illicit items. He noted that having these refineries operational has also helped tackle the issue of crude oil theft, which had previously been hindering Nigeria’s ability to meet its production targets set by the Organization of the Petroleum Exporting Countries (OPEC). An increase in legitimate crude oil production is expected to lead to higher government revenues and help stabilize the local currency, the naira.
The revitalization of the refineries has also resulted in job creation, making once-deserted depots active again. Host communities surrounding these refineries are benefiting from empowerment programs aimed at improving local living conditions, which may also help address issues like insecurity and crime in the region.
Billy Gillis-Harry, the National President of PETROAN, highlighted the importance of social empowerment initiatives for communities that produce oil. He remarked that these activities are in line with legal frameworks like the Petroleum Industry Act and the Nigeria Local Content Act, which aim to promote local benefits from the oil industry.
He praised the Managing Director of the Nigerian National Petroleum Company Retail Ltd, Mr. Hubb Stockman, for fostering a sense of belonging among community members. He encouraged both the local residents and PETROAN members to work together to support the successful operation of the Port Harcourt and Warri refineries.
Read Also: Adopt Asset-Based Approach For Economic Growth, Treasurers Urge Government
The successful functioning of these refineries is predicted to boost Nigeria’s overall economic growth. This will happen by increasing the domestic supply of petroleum products, decreasing the country’s reliance on imported fuel, and generating more revenue for the government. All these developments are expected to positively impact Nigeria’s gross domestic product (GDP) and overall economic progress.
In addition to economic benefits, having these refineries operating will enhance Nigeria’s energy security, bring down pressure on foreign currency exchanges, and create a stable supply of petroleum products. This stability could benefit various sectors like transportation, manufacturing, and agriculture, ultimately leading to improved productivity and competitiveness in the economy.
