Domestic crude oil refiners and officials at the Dangote Petroleum Refinery have opposed the recent importation of Premium Motor Spirit (PMS) by major oil marketers in Nigeria.
They argued that some of the imported fuels are of lower quality compared to those produced by the Dangote refinery, a position supported by officials at the Lekki-based plant.
On Wednesday, three major oil marketers revealed they were expecting vessels of imported petrol this week, barring any unforeseen delays. The dealers reported that about 141 million litres of PMS are being transported to Nigeria following the Federal Government’s full deregulation of the downstream oil sector.
Marketers cited the recent increase in petrol prices from the Dangote refinery, released by the Nigerian National Petroleum Company Limited on Monday, as creating space for more PMS imports.
In response, officials at the Dangote refinery and the Crude Oil Refiners Association of Nigeria (CORAN) criticised the move. They emphasised that, aside from increasing the demand for U.S. dollars, the imported fuels were of poor quality.
“These people (marketers) are importing dirty fuels that are toxic,” a reliable source at the Dangote refinery said, speaking confidentially.
The source continued, “They are importing substandard fuels, and if allowed, they will not stop. We have more than enough, but these guys don’t want it. They want the game to continue, but the game will not continue.”
Another official from the plant raised concerns about the quality of the imported products, saying, “You have to be concerned about the quality of the products they import. These are toxic fuels when you consider their blending process. All this is just to maximise profit.”
CORAN’s Publicity Secretary, Eche Stephen Idoko, supported these claims, alleging that some of the substandard fuels were blended in Malta or Togo. He called for backward integration and addressed concerns that Dangote would become a monopoly.
“The fear marketers have is that Dangote will become a monopoly, but that has been addressed by Dangote joining our association. With the Petroleum Industry Act and regulatory agencies in place, there’s no way Dangote can monopolise the market. However, some marketers are stuck in the old ways and fear the unknown in this new regime,” Idoko explained.
Idoko condemned the continuous fuel imports despite the launch of the Dangote refinery, insisting the focus should now be on exporting refined products rather than importing substandard fuel.
He also pointed out that some marketers failed to import fuel after the subsidy removal due to the foreign exchange crisis.
“For those importing, you still need dollars, which worsens the naira’s value. If we have foreign currencies chasing the naira to buy Nigerian refined products, the naira’s value will increase,” he added.
In response to concerns about fuel quality, the Nigerian Midstream and Downstream Petroleum Regulatory Authority stated that all imported PMS would undergo three major tests before being sold in the country.
The agency’s spokesperson, George Ene-Ita, assured that marketers with approved import licenses could import PMS, but only after the products passed rigorous tests to ensure compliance with standards.
“The products must meet our testing protocols at the ports. They’ll be tested at their origins and further tests will be conducted when they arrive in Nigeria to ensure they meet the required specifications,” he said.
