The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has found itself embroiled in controversy over conflicting statements regarding the supply of Premium Motor Spirit (PMS), commonly known as petrol, from the Port Harcourt refinery. In February 2024, PETROAN publicly declared that its members were actively lifting PMS from the newly revamped refinery, a claim intended to reassure Nigerians about the facility’s operational status and its potential to alleviate fuel scarcity concerns. This assertion was widely reported and contributed to a sense of optimism about the refinery’s contribution to national fuel supply. However, just four months later, PETROAN’s president, Billy Gillis-Harry, contradicted the earlier statement, asserting that the association’s members only lifted diesel and kerosene from the Port Harcourt refinery, not petrol. This stark reversal has raised questions about the association’s credibility and the actual operational status of the refinery.
The initial statement released by PETROAN’s spokesman, Joseph Obele, in February explicitly stated that its members were loading various petroleum products, including PMS, from the Port Harcourt refinery. The statement further highlighted the purported positive impacts of the refinery’s operations, including increased competition, lower fuel prices, and the eradication of adulterated diesel and kerosene from the market. This positive portrayal of the refinery’s performance contrasted sharply with persistent skepticism about its actual output and operational capacity. The statement served to bolster public confidence in the government’s efforts to revitalize the nation’s refining capacity and address chronic fuel shortages.
However, Gillis-Harry’s subsequent denial on national television directly contradicted Obele’s earlier pronouncements. Confronted with PETROAN’s previous claims, Gillis-Harry insisted that the association never lifted PMS from the Port Harcourt refinery. He claimed that while NNPC supplied PMS to its own trucks and stations, PETROAN members only purchased diesel and kerosene directly from the refinery. He further clarified that any PMS purchased by members was sourced from NNPC stations or private depots partnering with the state-owned energy company. This contradictory narrative has cast doubt on the veracity of PETROAN’s initial claims and raised suspicions about the association’s motives.
The discrepancy between PETROAN’s initial enthusiastic endorsement of the Port Harcourt refinery’s operations and its subsequent denial has fueled speculation about the true status of the refinery and the political dynamics surrounding the issue. The timing of the conflicting statements, coinciding with the removal of Mele Kyari as the Group Chief Executive Officer of NNPC, has further fueled speculation about a potential shift in PETROAN’s allegiances and motivations. Previously a staunch supporter of NNPC, the association’s change in stance raises questions about the influence of leadership changes within the national oil company on its public pronouncements.
Furthermore, independent reports have cast doubt on the operational efficiency and capacity of the Port Harcourt refinery. A report by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) revealed that the refinery was operating at only 42% capacity, significantly below its potential output. This discrepancy between reported capacity and actual production further underscores the ambiguity surrounding the refinery’s true operational status. The report also highlighted the ongoing closure of the Warri refinery due to safety concerns, compounding the challenges faced by Nigeria’s refining sector. The Port Harcourt refinery itself was subsequently shut down for maintenance, despite having undergone extensive refurbishment at a substantial cost.
The conflicting statements from PETROAN, coupled with independent reports and the timing of the controversy, highlight the complex and often opaque nature of the Nigerian petroleum industry. The situation has underscored the need for greater transparency and accountability in the sector, particularly concerning the operations of the nation’s refineries. The controversy also raises questions about the effectiveness of the substantial investments made in refurbishing the refineries and their ability to contribute meaningfully to national fuel supply. Ongoing calls for the privatization of the refineries reflect the enduring challenges and persistent skepticism surrounding their management and performance.
