Kehinde Fajobi
Oil marketers have expressed optimism that the resumption of operations at the Warri Refining and Petrochemical Company (WRPC) will lead to a significant drop in fuel prices, citing increased competition in the downstream sector.
The Nigerian National Petroleum Company Limited (NNPCL) announced on Monday that the 125,000 barrels per day Warri refinery had begun production, focusing on diesel, kerosene, and naphtha.
This development follows the recent reopening of the Port Harcourt refinery and is part of efforts to reduce Nigeria’s reliance on fuel imports.
Mustapha Zarma, National Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said the reopening would intensify competition among refiners, ultimately benefiting consumers.
“There is going to be a further drop in prices once the facility starts pumping out products in large volumes,” Zarma stated.
“The market will be driven by market forces at the end of the day. We commend the government and NNPC for ensuring the Warri refinery is operational and encourage them to get all three refineries working.”
Mohammed Shuaibu, Secretary of IPMAN’s Abuja-Suleja unit, added that domestic refining would also reduce the demand for foreign exchange needed for fuel imports, helping to stabilise the naira.
“With this development, the prices of refined products in Nigeria will continue to go down,” Shuaibu said.
“The demand for dollars to import products will drop, positively impacting our foreign exchange reserves.”
Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), reinforced the marketers’ expectations, noting that increased production would ensure product availability and competition.
“For the first time in more than two decades, we are having the Yuletide without fuel queues,” Ahmed stated.
“The abundance of products will drive down prices, benefiting consumers nationwide.”
The Warri refinery, rehabilitated for $898 million, is currently operating at 60 per cent capacity, producing key products needed for local consumption and export.
President Bola Tinubu described the development as “a remarkable achievement,” expressing confidence in his administration’s energy security strategy.
Marketers believe the combined impact of the Warri and Port Harcourt refineries, alongside the privately owned Dangote refinery, will foster a more competitive downstream market.
They anticipate further reductions in pump prices as the Kaduna refinery also prepares to come onstream.