...AS oil marketers seek to patronize Port Harcourt Refinery
THE Vice President of Crude Oil at Argus Media, Mr. James Gooder, said the commencement of operations in Dangote Petroleum Refinery, Port Harcourt Refinery and others has culminated in increased transparency and market competition.
Unlike the past when Nigeria and other West African nations depended on limited sources of petroleum products, the coming on stream of the refineries has widened available sources for marketers and consumers.
Speaking during a recent webinar organized by the Major Energy Marketers Association of Nigeria, MEMAN, Gooder, said: "The market dynamics are changing rapidly. Buyers and sellers in the Gulf of Guinea are now trading products and paying market-driven prices.
"These prices are based on trading activity and market data within West Africa, including fob (free on board) assessments for offshore Lome, Togo."
Gooder, who stressed that Argus Media is committed to providing transparent and reliable pricing benchmarks that reflect the realities of the West African market, said: "We can now benchmark Nigerian gasoline prices independently of EuroBob.
"Rather than West Africa and Nigeria relying on prices set far away in Europe, we are witnessing the emergence of a domestic or regional market where multiple players interact and effectively set prices through competition.
"This is how pricing should work--driven by market dynamics within the region, and Nigeria is now firmly plugged into these dynamics.
"On petrol pricing, we are already seeing this shift take shape. This is a pleasing development, as Nigeria's pricing model is aligning with international market standards, thanks to the contributions of the Dangote Refinery and other importers."
He said: "This is a significant step forward for Nigeria and the wider West African market. While petrol prices in Nigeria remain high due to the deregulation of the downstream sector and the devaluation of the naira against the dollar, we are seeing notable shifts.
"In absolute terms and relative to crude, the price of petrol is coming down. Refineries tend to reduce petrol production in the winter months due to lower demand, which contributes to the seasonal drop in prices.
"The Dangote Refinery is ramping up production, but imported products still dominate the market. However, the strengthening of the naira, supported by increased dollar inflows into the Nigerian economy and a competitive product market, is beginning to ease pricing pressures."
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"For a long time, international traders and suppliers had access to more market information than local buyers and consumers. Now, with multiple market participants entering the space, we're seeing a shift.
"The dominance of the NNPC as the primary buyer has diminished, and information about prices from different players is becoming more widely available.
"As more players and supply chains emerge, operators are better positioned to offer competitive prices. This transparency and competition will ultimately drive down costs and create a more efficient market for everyone involved."
Meanwhile, the Chairman of Petroleum Products Retail Outlets owners Association of Nigeria, PETROAN, Billy Grills-Harry, yesterday, expressed interest to source petroleum products from the Port Harcourt refinery.
In a telephone interview with Vanguard, he said: "Petroan is willing to buy. We have already requested NNPCL to open the portals and review operations."
Similarly, the Chief Executive officer of Major Energy Marketers Association of Nigeria, MEMAN, Clement Isong, who indicated such interest recently told Vanguard that, "All product supply sources will be explored."
