Oil marketers expressed skepticism regarding Dangote refinery’s current production levels, noting that the $25 billion facility is not yet operating at the projected Petrol volumes.
Lagos, Nigeria – Oil marketers have announced that approximately 42.3 million litres of imported Premium Motor Spirit (PMS), commonly known as petrol, are anticipated to arrive in Nigeria next week. This development comes as local refiners are urged to increase their production capabilities.
Marketers indicate that imports of petrol will persist until domestic production reaches a level sufficient to meet the country’s demand. They emphasized that the output from modular refineries and the large-scale Dangote Petroleum Refinery has not been enough, explaining that the ongoing need for diesel and petrol imports reflects this shortfall.
On September 3, 2024, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced that the Dangote refinery is expected to start supplying 25 million litres of petrol daily from September, with plans to increase to 30 million litres by October. The NMDPRA confirmed a meeting with the Nigerian National Petroleum Corporation (NNPC) to secure local crude supplies for the refinery.
However, oil marketers expressed skepticism regarding the refinery’s current production levels, noting that the $25 billion facility is not yet operating at the projected volumes. As a result, they are compelled to import petrol to supplement local supply.
“Some of our recent petrol shipments arrived last week, and we expect the remaining ones in the coming week, totaling about 32,000 metric tonnes of PMS,” commented a key marketer who requested anonymity due to lack of authorization to speak publicly. This volume corresponds to approximately 42.3 million litres, given that one metric tonne of petrol is equivalent to around 1,322.76 litres.
Reports indicate that two major marketers are coordinating these imports in conjunction with others who have already brought products into the country. The marketers clarified that their intent to purchase from the Dangote refinery remains intact, but in the context of a deregulated market, they have the freedom to source their products from a variety of suppliers to remain competitive.
Recent reports also noted that four vessels carrying petrol arrived at Nigerian seaports between October 18 and 20, with a total of around 123.4 million litres of PMS reported to have docked at two ports to enhance fuel availability nationwide.
A representative from the marketing sector remarked that many retailers are preparing to import additional products, while others who may not be able to manage their own imports are opting to buy directly from the Dangote refinery. “The market is currently deregulated, allowing all actors the liberty to obtain products from the most viable sources. Our local refineries simply aren’t producing enough to satisfy demand,” he stated.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, confirmed that while members have not yet commenced importing PMS, the liberalized market permits any qualified entity the opportunity to import fuel freely.
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