PENGASSAN Confirms Port Harcourt Refinery is Operational, But Petrol Prices Unlikely to Drop

 

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has confirmed that the Port Harcourt refinery, with a capacity of 60,000 barrels per day, is now operational and producing refined petroleum products. This includes diesel, kerosene, and petrol, according to the association's National President, Festus Osifo.

Osifo made the announcement during the National Executive Council Meeting of PENGASSAN on Tuesday, December 3, in Abuja. He addressed lingering doubts regarding the refinery's functionality and clarified that while the refinery is operational, it is unlikely to result in a reduction in petrol prices.

He explained that the current state of the Nigerian economy, particularly the exchange rate of the naira, plays a significant role in determining the price of refined products. Osifo noted that the naira’s depreciation against foreign currencies has a direct impact on the cost of petroleum products, maintaining that despite the refinery's operations, the price of petrol is unlikely to decrease significantly.

“The confirmation I have today is that the refinery is working,” Osifo stated. He emphasized the importance of accountability, both from the government and the media, in ensuring the success of the refinery. "We cannot just accept everything the government tells us; we must verify it," he said.

Osifo further explained the refinery's process, detailing that the fractional distillation unit (CDU) is responsible for refining crude oil by heating it at varying temperatures to produce different products. While diesel, kerosene, and naphtha are currently being produced, the petrol production process remains incomplete. Maintenance is ongoing, and naphtha is being blended with other materials to produce petrol. However, the unit that produces reformate, a crucial ingredient for petrol, is still under construction.

Despite the progress, Osifo highlighted that the primary challenge facing the sector remains the weakness of the naira. "With the naira trading at 1 dollar to 1,700 naira, the cost of goods, including petroleum products, will remain high," he concluded.