How PH, Warri Refineries Will Lead To Crash In Petrol Prices – PETROAN
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has stated that the revival of the Port Harcourt and Warri refineries by the Federal Government will lead to a significant drop in petrol prices.
In a statement on Saturday, PETROAN’s National Public Relations Officer, Dr. Joseph Obele, confirmed that the refineries are now fully operational, dispelling previous doubts. PETROAN members are currently loading petroleum products, including Dual Purpose Kerosene (DPK), Automotive Gas Oil (AGO), and Premium Motor Spirit (PMS).
The resurgence of these refineries is expected to spark intense competition in the petroleum sector, which will, in turn, drive down fuel prices. According to Obele, competition is a crucial factor in reducing prices, as Nigerians continue to advocate for lower PMS rates.
He highlighted the numerous benefits of the refineries’ revival, including the reduction of adulterated diesel and kerosene in the market. Obele pointed out that for years, the absence of functional refineries had led to the proliferation of fake petroleum products, which posed significant risks to consumers. With the availability of genuine products, the demand for fake ones has decreased, reducing the risks of explosions and damage to equipment.
Additionally, the operational refineries have helped curb crude oil theft, which had previously hindered Nigeria’s ability to meet OPEC production targets. As crude oil production increases, Nigeria is expected to generate more revenue, which will contribute to stabilizing the naira.
The revitalization of the refineries has also created job opportunities and invigorated once-deserted depots, leading to a boost in local economies. Host communities are benefiting from empowerment programs, which is expected to have a positive impact on reducing insecurity and crime rates in the region.
PETROAN believes that the operational Port Harcourt and Warri refineries will contribute to Nigeria’s economic growth by increasing the availability of petroleum products, reducing reliance on imports, and generating more revenue for the government. This will enhance the country’s Gross Domestic Product (GDP) and overall economic development.
Furthermore, the refineries will strengthen Nigeria’s energy security, ease pressure on foreign exchange, and create a stable supply chain for petroleum products. These improvements will benefit various sectors, including transportation, manufacturing, and agriculture, leading to enhanced economic productivity and competitiveness.
