The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed optimism that its members could begin loading petroleum products from the Port Harcourt refinery this week.
The 60,000 barrels-per-day refinery, owned by NNPC Limited, resumed operations last week and is currently refining at 70 percent capacity.
Chief Chinedu Ukadike, the Public Relations Officer of IPMAN, stated that the refinery is presently supplying products to NNPC retail outlets and a select few marketers.
“With the expected increase in supply from the refinery, independent marketers are anticipated to start loading products from the facility,” Ukadike explained.
He also revealed that independent marketers are now lifting petroleum products directly from the Dangote Refinery. This development follows an agreement with the refinery’s management to lower the minimum bulk purchase requirement to two million litres of petrol.
“Our members are buying products from Dangote Refinery because Dangote has finally reduced the minimum quantity of bulk purchase to two million litres. So most of our members are now able to access it”.
Ukadike pointed out that getting access to load directly from the refineries has made the market more competitive as independent marketers are now able to compete with other major marketers.
“Petroleum products distribution has been smooth and there are no queues but what you will see is a bit of price differentials. This is the beauty of deregulation. Not only that but with the coming onstream of Port Harcourt Refinery there is also less pressure on Dangote products.
“Although most marketers have not started accessing products from Port Harcourt refinery hopefully by next week (this week), according to an official of NNPC, they will have enough to accommodate independent marketers”.
He stressed that competition in the market has just begun, adding that with the reduction in the exchange rate of the Naira to the dollar, pump prices would also likely drop in the coming weeks.
