Port Harcourt refinery expected to come back on stream at the end of July ending fuel scarcity

PORT Harcourt's oil refinery is on course to resume operations by the end of July refining 210,000 barrels of crude a day in what petroleum officials believe will mark the end of Nigeria's ongoing petrol scarcity which has created widespread inflation.

Over recent years, Nigeria has been suffering from the effects of hyper-inflation, which currently stands at about 34%, brought about by the high cost of petrol and diesel. Because virtually all of Nigeria's haulage is done by road, any spike in the cost of petrol and diesel leads to an automatic increase in the cost of food and consumer goods.

This rise is brought about by the lack of local refining capacity as all of Nigeria's three federal government owned refineries in Warri, Port Harcourt and Kaduna have been out of action for over 20 years. Last year, the 650,000 barrels a day Dangote Refinery in Lagos started operations but it is yet to start operating at full capacity, so the prices of petrol and diesel are yet to come down.

Chief Ukadike Chinedu, a spokesman for the Independent Marketers Association of Nigeria, said that the resumption of operation in Port Harcourt would stimulate economic activities, reduce the price of petroleum products and ensure adequate supply. Last year, petroleum minister Heineken Lokpobiri, announced the mechanical completion and flare start-off of the refinery in Port Harcourt.

He added that the refinery comprises of two units, with the old plant having a capacity of 60,000 barrels per day and the new plant150,000 barrels a day. Port Harcourt's refinery was totally shut down in March 2019 for the first phase of repair works after the government secured the service Italy’s Maire Tecnimont to handle reviews of the complex, with oil major Eni appointed technical adviser.