Approximately 42.3 million litres of imported Premium Motor Spirit (PMS), commonly known as petrol, are expected in Nigeria next week, according to statements from oil marketers on Friday. They urged local refiners to increase production to meet domestic needs.
Petrol imports, they noted, will continue until local production meets national demand. Marketers insisted that the current output from modular refineries and the multi-billion dollar Dangote Petroleum Refinery is insufficient, which is why both diesel and petrol importation persist.
On September 3, 2024, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced that the Dangote refinery would begin supplying 25 million litres of petrol daily to the Nigerian market, with an increase to 30 million litres anticipated by October. In a brief statement, the NMDPRA confirmed a local crude supply arrangement with the NNPC to facilitate this.
Despite these announcements, oil marketers remarked on Friday that the Lekki-based refinery is not yet producing at the announced volume, necessitating continued petrol imports. “Some of our consignments of PMS imports came into the country last week, and we expect the remaining ones to arrive by next week. About 32,000 metric tonnes of PMS will be arriving next week,” stated a major marketer, who requested anonymity due to lack of authorisation to speak on the subject.
Since about 1,322.76 litres of petrol equals one metric tonne, the 32,000 metric tonnes arriving next week translates to 42.3 million litres of imported petrol.
It was learned that two major marketers are importing this volume jointly, while other dealers have already brought products into the country. “The consignments are jointly owned and are being imported into the country by major marketers. This does not mean that we will not buy from the Dangote refinery. But the fact is that since the market has been deregulated, everyone is now competing,” said the marketer.
“So, it is up to you to decide on where to get the product that will enable you to compete effectively. Nobody is disputing that. So, the importation of PMS and other products is not against the fair business practice,” the marketer added.
Earlier this week, it was reported that four vessels carrying petrol arrived at seaports along Nigeria’s borders between Friday, October 18, and Sunday, October 20, 2024. A document from the Nigerian Port Authority revealed that approximately 123.4 million litres of PMS were berthed at two seaports to bolster the country’s fuel supply.
Oil dealers intended to import additional supplies to supplement the $20 billion Dangote Petroleum Refinery’s output, as production from the plant is not yet meeting domestic demand.
Another dealer commented on Friday, saying many marketers are preparing to import more products, while others who cannot import are buying from the Dangote refinery. “The market is free now. It is a deregulated market, so everybody can source their products from wherever is best for them. Also, our local refineries are not producing enough to meet domestic demand.
“That is why I laughed when it was revealed that an indigenous refiner went to court to sue marketers to stop importing products. That can’t work in a deregulated market. Everyone who can import now is currently doing so. Even NNPC is importing,” the marketer remarked. “The last consignment we got was from the imported PMS of NNPC, which we took about six days ago and which we finished selling before our own came in. Oil and refined petroleum products are the life-wire of the economy. If anything happens to them, every sector of the economy will be affected,” they emphasised.
Chief Ukadike Chinedu, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), earlier confirmed that although IPMAN members have not started importing PMS, the liberalised market allows anyone with capacity to import.