Port Harcourt – The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has affirmed that, despite the recent resumption of operations at the Port Harcourt refinery, there will be no significant reduction in petrol and petroleum product prices. This strategic decision, outlined by Comrade Nwoko George, Chairman of PENGASSAN Port Harcourt zone, aims to prevent smuggling and maintain competitiveness in the market, with a direct impact on Nigerians.
In an exclusive interview with reporters on Saturday, Comrade Nwoko George highlighted the multifaceted effects of this decision. While the refinery’s restart is expected to create jobs and mitigate the exodus of Nigerians abroad, the prices of petroleum products will remain relatively stable. George emphasized that lowering prices drastically could lead to increased smuggling of products out of the country, affecting the accessibility of fuel for Nigerians.
“The production will commence in earnest as crude came into the plant yesterday, but that would not reduce the cost of PMS because if we do sell at a cheaper rate, the smuggling of the products out of the country would continue,” stated George.
He further pointed out that maintaining competitive prices would contribute to the stability of the forex exchange, addressing a key concern during product importation. The Port Harcourt refinery’s revival is anticipated to alleviate scarcity concerns, marking a positive turn in the nation’s energy landscape and ensuring a steady supply of fuel for Nigerian consumers.
“The coming alive of the Port Harcourt refinery will put less pressure on the forex exchange that we sought for during the importation of products outside the country. These are the two key issues I know we are going to solve. We’ll solve the problem of forex exchange to import the products, and we will also have PMS and other products available within the country,” explained George.
While acknowledging that the attendant consequences of high petrol costs won’t disappear overnight, George highlighted the broader benefits, stating, “It is not rocket science; the problems of Nigeria would disappear at the click of a button. One of the issues we have been trying to prove is that we need the refinery to be functional so that there would be job creation and also reduce the number of people leaving the country.”
The Minister of State, Petroleum Resources, Heineken Lokpobiri, had previously announced the expected resumption of production at the Port Harcourt refinery by December 2023. With a targeted production capacity of 54,000 to 60,000 barrels of refined petroleum products per day, the rehabilitation of the first phase of the refinery is nearing completion, promising positive impacts on the nation’s economic landscape and the lives of ordinary Nigerians.
