About 42.3 million litres of imported Premium Motor Spirit (PMS), commonly known as petrol, is set to arrive in Nigeria, according to oil marketers on Friday. They emphasized the need for local refineries to boost output as importation remains necessary to meet domestic fuel demand.
Petrol dealers pointed out that imports would continue until Nigeria’s local production, including from modular refineries and the Dangote Petroleum Refinery, can sufficiently supply the market. As of now, production levels at these refineries fall short, compelling dealers to rely on imported supplies of diesel and petrol.
In early September, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced that the Dangote Refinery would initially supply 25 million litres of petrol daily, rising to 30 million litres starting in October 2024. According to NMDPRA, an agreement was reached with NNPC to supply local crude to Dangote’s refinery in Nigerian currency.
“NNPC has agreed to commence crude oil sales to Dangote Refinery in naira, starting with a supply of 25 million litres of PMS this September, which will increase to 30 million litres by October 2024,” NMDPRA posted on social media.
However, oil marketers claim the Dangote facility, valued at $25 billion and based in Lekki, has not yet reached these volumes, making further imports necessary to fill the gap. One major dealer, who requested anonymity, reported, “We expect about 32,000 metric tonnes of PMS to arrive next week, equivalent to around 42.3 million litres.”
Two prominent marketers are collaborating on the importation, supplementing supplies previously brought in by other dealers. “The consignments are shared between major marketers. This doesn’t exclude us from buying from Dangote Refinery, but in a deregulated market, we have the freedom to source competitively,” the dealer explained.
From October 18 to 20, 2024, four vessels carrying approximately 123.4 million litres of petrol docked at Nigerian ports, enhancing fuel supplies nationwide. These deliveries confirm a recent report that revealed oil marketers are actively importing fuel to support the Dangote Refinery’s limited output.
Another dealer commented, “Many marketers are ramping up imports, while those who cannot import buy from Dangote. The market’s now open, so everyone sources as they need. It’s essential, especially since local production is still insufficient.”
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Ukadike Chinedu, confirmed that while IPMAN members haven’t yet started importing PMS, the market is now open to anyone with the capacity to import.