By Akinnodi Francis, Ondo

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Economic experts have projected that the operation of more refineries in Nigeria will lead to a reduction in the prices of petroleum products.

They shared their perspectives in separate interviews with The Hope.

This development followed the re-streaming of the Warri Refinery, although experts expressed scepticism regarding its functionality, given the recent controversies and criticisms surrounding the Port Harcourt Refinery. Despite this, they acknowledged the potential emergence of a free-market economy in the sector.

The Hope reports that the Warri Refining and Petrochemicals Company (WRPC),  managed by the Nigerian National Petroleum Company Limited (NNPC Ltd.), resumed operations on Monday after years of dormancy.

Currently operating at 60 per cent of its installed capacity, the 125,000 barrels per day (bpd) refinery resumed operations shortly after the NNPC Ltd. restarted the 60,000 bpd old Port Harcourt refinery in November.

Although petroleum product prices have fluctuated recently, the Dangote Refinery took the lead in reducing the ex-depot price of Premium Motor Spirit (PMS) from ₦970 to ₦899.50 per litre, resulting in a retail price of ₦935 per litre nationwide.

Similarly, NNPC Ltd. announced a reduction in the ex-depot price of petrol from ₦1,020 to ₦899 per litre, which is anticipated to intensify competition among marketers.

Reacting to the potential industry dynamics, economist Sanya Ogunsakin emphasised the advantages of a free-market economy.

“Free market economy means that there should be free entry and free exit. It also brings competition and prices of goods and services lower.

“That is what competition does. In fact, more refineries should come on board, and that will force the prices lower in the long run.

“It leads to more innovations, better quality and standards.

“That is what the existence of the refineries will bring on the table of downstream oil marketing in Nigeria.

“With the Dangote Refinery, Port Harcourt, Warri refineries and other modular refineries coming on stream, we are better for it as a country and as an economy,” he said.

Financial consultant Dayo Akinwale added that the country’s Gross Domestic Product (GDP) would receive a significant boost, alongside the creation of more job opportunities.

Meanwhile, a survey by The Hope around Ondo City and its environs revealed that retail outlets are currently selling PMS at prices ranging between ₦1,005 and ₦970 per litre.