PH Refinery resumes production, but the relief may be short-lived
Despite the excitement surrounding the revival of local refineries, Nigerians remain skeptical about lasting change in fuel prices and supply. The recent announcement of the resumption of production at the Port Harcourt Refinery has been met with cautious optimism across the nation.
The news, coupled with the Nigerian National Petroleum Company Limited (NNPCL) confirming that product loading has commenced, offers a flicker of hope to marketers and consumers alike. However, while the promise of local production is a welcome relief, the underlying question remains: how will this impact the price of petrol for Nigerians?
For years, the country has witnessed failed attempts at reviving the ailing refineries, with billions of dollars poured into turnaround maintenance programs with little to show for it. While the Nigerian government is eager to paint this as a milestone achievement, and President Bola Ahmed Tinubu has urged the NNPCL to expedite the reactivation of the second Port Harcourt Refinery along with those in Warri and Kaduna, it is crucial to temper any undue expectations.
The optimism surrounding this development, particularly the combination of the Port Harcourt and Dangote refineries, may be premature. The nation’s energy sector has long struggled with supply chain challenges and import dependency, draining foreign exchange and exacerbating the economic pressures felt by millions of Nigerians.
The idea that the resumption of local refining will provide a significant solution to these problems remains uncertain, at best. While the reactivation of the Port Harcourt Refinery might diversify the supply of petroleum products and create market competition, it does little to address the core issue: fuel prices.
Advocacy groups within the oil and gas sector are wary of celebrating prematurely. Their concern lies in the entrenched cabals within the industry who have long dominated the sector. These influential players have vast resources and connections that could easily derail the government’s genuine intentions. The fear is that the current administration may be unable to overcome these obstacles and effectively serve the public interest.
Furthermore, the idea that multiple supply sources will lead to lower prices is debatable. While there is talk of diversification—encouraging competition and ensuring availability—many are already arguing for continued importation, citing the need for more competition to stabilise prices. But such arguments, while seemingly sound, often hide the underlying truth: the Nigerian consumer remains the ultimate victim.
Since the ill-advised removal of the fuel subsidy, Nigerians have faced skyrocketing fuel prices that have impacted nearly every aspect of daily life. From transport to basic goods and services, fuel costs are the lifeblood of the economy—and yet, they remain out of reach for most citizens. The hope that local production will ease this burden is quickly overshadowed by the reality that foreign exchange inputs and the fluctuating international crude oil market will continue to drive prices upward.
Nigerians are all too familiar with the recurring pattern of disappointment. Past experiences with refinery revivals and promises of reform have often ended in failure. While the Port Harcourt Refinery’s resumption might bring some relief, it is unlikely to herald a permanent solution to the nation’s energy crisis. The entrenched interests within the oil sector, coupled with the country’s dependence on foreign exchange, will likely ensure that the Nigerian consumer continues to bear the brunt of high fuel prices.
For now, the nation waits with bated breath. The potential for real change exists, but it requires more than just the reactivation of refineries—it demands a comprehensive overhaul of the oil and gas sector, free from the clutches of powerful monopolies and vested interests.
Until then, Nigerians will remain skeptical, weary of the repeated letdowns that have defined the country’s energy sector for decades. It’s time for the government to prove that this time is different. Until then, the benefit of the doubt is a hard-earned luxury.
