2024 was eventful in the Nigerian downstream petroleum industry. The country became self-reliant in petroleum product production, with increased refining capacity close to 700,000 barrels.
Following President Bola Tinubu’s removal of subsidies on petroleum products in 2023, Nigerians faced high petrol prices, which tripled for more than 12 months.
Petrol prices increased fivefold in the country, from N189 per litre to over N1,000.
The increase reverberated across other sectors of the economy as living costs became prohibitive.
Transportation costs became exorbitant, and transporters hiked their charges following pump changes.
Many households were reportedly affected as the prices of essential goods, especially food, skyrocketed.
Nigeriaâs inflation hit a new high following an increase in petrol prices, which affected the cost of living.
Fast-forward to September 3, 2024. The 650,000 bpd Dangote Refinery announced petrol production, relieving Nigerians who believed the facility would offer the product at a discounted rate.
The refineryâs management subsequently announced the Nigerian National National Petroleum Company Limited (NNPC) as the sole off-taker of its product.
The announcement also meant that the state oil firm would sell the product at a higher rate as it announced price adjustments the same day Dangote released its petrol.
However, in subsequent months, petrol prices began to drop after a series of price adjustments.
Additionally, the NNPC announced that the Port Harcourt refinery had commenced production after years of hiatus.
The resulting competition between the two functional refineries led to further petrol price reductions as Dangote and NNPC announced new petrol prices of N899 per litre.
Analysts believe the intense competition in the sector could lead to more drops in petrol prices.
Adeola Yusuf, energy policy analyst, says that apart from the banking sector, the petroleum industry remained the busiest sector in 2024.
TimesNow.com.ng earlier reported that NNPCL has announced that the 125,000-barrel-per-day Warri Refining & Petrochemicals Company (WRPC) has resumed operations.
Mele Kyari, the NNPCL Group Chief Executive Officer, disclosed this during a Monday, December 30, tour of the Delta State facility.
The news of the operational refinery comes barely a month after the old Port Harcourt Refinery began operations.
Proofread by Kola Muhammed, journalist and copyeditor at TimesNow.com.ng
