From Suleiman Abubakar MAPSA
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and oil marketers have projected a significant reduction in refined petroleum prices following the resumption of operations at the Warri Refining and Petrochemicals Company Limited (WRPC).
Located in Delta State, the WRPC boasts a refining capacity of 125,000 barrels per day and is expected to intensify competition in Nigeria’s downstream oil sector. This development comes shortly after the revival of the Port Harcourt Refinery, which recently began operations at a capacity of 60,000 barrels per day.
During an inspection tour on Monday, NNPCL Group CEO Mele Kyari emphasized the progress made at the Warri refinery, which is currently operating at 60% capacity, translating to 75,000 barrels per day. Despite ongoing rehabilitation, Kyari assured Nigerians of improved energy security, reduced dependence on fuel imports, and stabilization of fuel prices.
NMDPRA CEO Farouk Ahmed highlighted that increased domestic production would create market competition, further driving down prices. Additionally, local refining is expected to ease the pressure on foreign exchange reserves by reducing dollar demand for fuel imports.
The $898 million rehabilitation project of the Warri refinery, initiated in 2021, aims to bolster Nigeria's energy self-sufficiency. The facility, inaugurated in 1978, produces critical products such as diesel, kerosene, and naphtha for domestic and regional markets.
With five refineries, including the Dangote Refinery and the Kaduna Refinery poised to begin operations soon, stakeholders anticipate a transformative era for Nigeria’s energy sector. Mohammed Shuaibu, Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), expressed optimism, noting that increased competition could significantly lower fuel costs for consumers.
This milestone strengthens Nigeria’s efforts to reduce its reliance on expensive fuel imports while enhancing foreign exchange earnings through potential product exports.
