123m Litres Petrol Imported Amid Dangote Refinery Talks

Petrol Imports Rise to 123m Litres Amidst Refinery Talks

Nigeria's oil marketers are facing a supply gap challenge due to the...

Nigeria's Fuel Supply Boosted: 123.4m litres petrol imported amid dangote refinery's lower production.

Nigeria's fuel supply received a significant boost over the weekend as four vessels carrying Premium Motor Spirit (PMS), or petrol, arrived at the country's seaports. Between October 18 and 20, these vessels delivered approximately 123.4 million litres of fuel.

According to a report released by the Nigerian Port Authority (NPA) on October 20, the vessels berthed at Apapa port in Lagos and Calabar port in Cross River State. This fuel importation aims to address domestic supply shortages.

Notably, this development comes despite the impending operationalization of the $20 billion Dangote Petroleum Refinery. The refinery's operational activities have yet to meet domestic demand, necessitating these additional fuel shipments to bridge the supply gap.

Pointers 

• 4 vessels arrived with 123.4 million litres of PMS
• Vessels docked at Apapa (Lagos) and Calabar (Cross River) ports
• Fuel shipments aimed to address domestic supply shortages
• Dangote Petroleum Refinery's operational activities have not met domestic demand

Nigeria's oil marketers are facing a supply gap challenge due to the Lekki-based Dangote Refinery's lower-than-expected production. The refinery is currently producing around 10 million litres of petrol daily, significantly lower than its projected 25 million litres. This shortfall has led to increased imports to meet the country's fuel demands.

In September, the rise in pump prices of Dangote Refinery's petrol, managed by the Nigerian National Petroleum Company Limited (NNPCL), prompted dealers to import approximately 141 million litres of Premium Motor Spirit (PMS) to stabilize the market. The recent shipments to Nigerian ports aim to ensure a steady fuel supply amidst the country's deregulation of the downstream oil sector. This deregulation allows oil marketers to import PMS at fair market prices.

Latest Shipments:

First Shipment: 35,000 metric tonnes of PMS arrived at Apapa's ASPM jetty on October 18, allocated to West African Port Services.

Second Shipment: 37,000 metric tonnes of fuel for Intership arrived later that day at the same jetty.

Third Shipment: 10,000 metric tonnes of PMS berthed at the same terminal in the late afternoon.

At the Calabar port, a vessel carrying 10,000 metric tonnes of Premium Motor Spirit (PMS) arrived at the Eco Marine terminal on Sunday morning, October 20. This shipment was part of a larger delivery, as three other vessels brought in a total of 92,000 metric tonnes of petrol, equivalent to approximately 123.4 million litres, using a conversion rate of 1,341 litres per metric tonne.

George Ene-Ita, spokesperson for the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), confirmed that licensed marketers are authorized to import PMS. He stressed that all imported fuel must undergo three critical quality control tests conducted by the regulatory authority to ensure safety and standards.

Import Details:

Total Shipment: 92,000 metric tonnes of petrol

Conversion Rate: 1,341 litres per metric tonne

Total Litres: approximately 123.4 million litres

Arrival Dates: October 18-20

Regulatory Requirements:

Authorized Importers: Licensed marketers only

Quality Control Tests: Three critical tests conducted by NMDPRA

Import Regulation: Ensures safety and standards for imported fuel.