Marketers Raise Alarm Over Lopsided Downstream Oil Market Structure
By NaijaEnquirer Staff
The Hoscom Bulk Petroleum Retailers of Port Harcourt Refinery have expressed concerns over what they describe as a lopsided domestic petroleum market structure, alleging that a monopoly is being created by the actions of the Nigerian National Petroleum Company Limited (NNPCL).
The group’s concern follows recent comments by NNPC’s Group Chief Executive Officer, Bayo Ojulari, during a courtesy visit by PENGASSAN leadership. Ojulari reportedly stated that upon assuming office, he discovered that operating the Port Harcourt Refinery was financially unsustainable, prompting the decision to halt operations in search of a viable solution.
Hoscom argued that nation-owned refineries act as price regulators in the petroleum sector and that shutting them down removes a crucial check on private refinery pricing, giving undue advantage to private operators. This, they said, defeats the purpose of maintaining government-owned refineries.
In a statement jointly signed by High Chief Sunny Nkpe (BoT Chairman), Dr. Joseph Obele (Administrative Secretary), Promise Oluka Ochen (BoT Member), Emmanuel Inimgba (BoT Secretary), Hon. Dickson Oballey (Board Member), Pastor Tekena Ikpaki (Administrative Chairman and Board Member), and Chief Zephaniah Sample (BoT Member), Hoscom criticized NNPCL for relying on its equity stake in Dangote Refinery while neglecting state-owned refineries.
“NNPCL should be ashamed to proudly state their reliance on a private refinery while shutting down their own facilities,” the group said, adding that NNPCL’s stake in Dangote Refinery stands at only 7.2%, far below the initially agreed 20% due to non-payment of the balance.
The marketers further expressed disappointment that the Port Harcourt Refinery was closed despite the $1.5 billion rehabilitation project already undertaken. They called on President Bola Ahmed Tinubu to take decisive steps to revive all four state-owned refineries, noting that doing so would boost GDP and create jobs.
Hoscom alleged that Ojulari’s decision to shut down the refinery was deliberate and not merely for “routine maintenance” as claimed, accusing him of favoring private refinery interests at the expense of public assets.
“This appears to be a calculated move to grant private operators market dominance, enabling price exploitation against Nigerians,” the group warned.
The group reiterated its support for PENGASSAN’s demand for immediate refinery rehabilitation and urged the Federal Government to restore balance in the downstream sector.
