IPMAN Announces Port Harcourt Refinery on Track for August Deadline, Set to Supply 10-12 Million Liters of Petrol Daily
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has confirmed that the Port Harcourt refinery is on schedule to meet its August deadline for producing petroleum products, with an expected output of 10 to 12 million liters of petrol daily.
This update was provided by IPMAN’s National Operations Controller, Zarma Mustapha, during an interview with Channels TV on Thursday.
Mustapha highlighted that the refinery’s output will significantly enhance the national supply of petroleum products, potentially reaching 11 to 15 million liters daily, and ensure energy availability nationwide.
He also noted that the refinery will operate autonomously, selling petrol at prevailing market rates with minimal government intervention.
“There’s an understanding that the Port Harcourt refinery will function independently, selling at whatever market price is necessary to recover its costs,” Mustapha stated. “It won’t be run like a government entity as it was before. I’m confident that this August deadline is achievable, and the refinery will soon be fully operational, producing all the necessary components at a capacity of 10 to 12 million liters of PMS daily.”
Potential Impact on Petrol Prices
Addressing the possibility of reduced petrol prices, Mustapha suggested that any price reduction would depend on the operators’ decision to sell at a subsidized rate. However, he emphasized that the refinery needs to recover its operational costs, including a $1.5 billion loan secured for its 2021 maintenance.
“The refinery’s ability to reduce petrol prices depends on the cost of crude oil, which they are purchasing at international rates. They also need to repay the $1.5 billion loan they took from an African financial institution,” Mustapha explained.– Mustapha
Key Points to Note
Despite being a major oil producer, Nigeria currently lacks functional public refineries. The country has four state-owned refineries in Port Harcourt, Kaduna, and Warri, but none are fully operational.
As a result, Nigeria relies heavily on imported refined petroleum products, which has strained the country’s economy.
NNPC boss Mele Kyari recently assured that the Port Harcourt refinery would begin operations in August, with the other three refineries in Kaduna and Warri expected to start in the second half of 2025.
This development is part of the government’s broader initiative to revitalize Nigeria’s refining capacity and reduce dependence on imports. However, given previous unmet deadlines for refinery operations, there is skepticism about the feasibility of the current timeline.
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