Warri Refinery Resumes Operations: Fuel price Crash

Warri Refinery Resumes Operations: Marketers Anticipate Fuel Price Drop

 

With the Warri Refining and Petrochemicals Company Limited (WRPC) back in action, oil marketers and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) predict a further drop in fuel prices. The renewed competition among domestic refiners is expected to push prices lower, benefiting consumers nationwide.

 

A Milestone in Refining Operations

 

The Nigerian National Petroleum Company Limited (NNPCL) announced the resumption of operations at the WRPC, which has a capacity of 125,000 barrels per day. This marks a significant achievement for the nation, coming just weeks after the reopening of the 60,000 barrels per day Port Harcourt Refinery.

 

During a tour of the Warri facility, NNPCL’s Group Chief Executive Officer, Mele Kyari, emphasized that the plant is operational, though repairs are not yet fully complete. The refinery is currently producing straight-run kerosene, diesel, and naphtha, with plans to export some products to generate foreign currency.

 

“This is real. We’re showing Nigerians that these plants are functional again,” Kyari stated. He highlighted the potential for the refinery to position Nigeria as a net exporter of petroleum products, fulfilling a key goal set by President Bola Tinubu.

 

Strengthening Energy Security

 

President Tinubu lauded the milestone, noting that the Warri refinery is currently operating at 60% capacity, translating to 75,000 barrels per day. Kyari added that this progress underscores the administration’s commitment to revitalizing all three refineries—Port Harcourt, Warri, and Kaduna—to bolster the country’s energy security.

 

Kyari also revealed plans to surprise Nigerians with the commencement of operations at the Kaduna refinery in the near future. “This success is a testament to teamwork, determination, and the belief that we can rebuild our refining capabilities,” he said.

 

Impact on Prices and Competition

 

The resumption of the Warri refinery is set to intensify competition in the downstream sector. Independent Petroleum Marketers Association of Nigeria’s National Operations Controller, Mustapha Zarma, expressed optimism that increased domestic refining capacity would lead to lower fuel prices.

 

“With more products hitting the market, competition will drive prices down, easing the financial burden on Nigerians,” Zarma said. He commended the government and NNPCL for their efforts and urged them to sustain progress across all refineries.

 

Boosting Market Dynamics and Investment

 

NMDPRA CEO Farouk Ahmed highlighted the broader implications of the refinery’s reopening, noting its potential to stabilize fuel supply and pricing. “This achievement ensures that Nigerians experience a festive season without fuel shortages,” he remarked.

 

Ahmed also pointed to the rise of modular refineries, which are supplementing the country’s refining capacity. “The abundance of locally refined products will not only reduce dependence on imports but also enhance competition, ultimately benefiting consumers,” he said.

 

Towards a Sustainable Future

 

With the Warri and Port Harcourt refineries now operational and plans for Kaduna underway, Nigeria’s refining sector is experiencing a long-overdue revival. This progress is expected to reduce reliance on fuel imports, create jobs, and enhance energy security.

 

As competition heats up and more products flood the market, the outlook for fuel prices remains promising. For Nigerians, this development signals a brighter future where affordable and locally refined petroleum products become the norm.