In a notable development in Nigeria’s oil sector, three major oil marketers are set to import a total of 141 million litres of petrol this week. This importation comes despite the ongoing local production of petrol at the Dangote refinery.
The primary reason for this large-scale importation is the recent deregulation of the downstream oil sector by the Federal Government. Deregulation has led to significant changes in the pricing and availability of petrol. Following these changes, the price of petrol has increased, which has created a demand for additional supplies.
Each vessel involved in this importation is expected to carry about 35,000 metric tonnes of petrol. With three vessels planned, the total import volume will be substantial. However, the import process is not instantaneous. The marketers will receive the vessels in stages, allowing time for regulatory compliance and storage management.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will oversee the quality of the imported petrol. All petrol imports must undergo several critical tests to ensure they meet safety and quality standards. These tests include checking the petrol’s quality, flash points, and other specifications crucial for safe consumption and use.
The Nigerian National Petroleum Company Limited (NNPCL) recently adjusted the pump prices of petrol. Prices have been set at a minimum of N950 per litre in Lagos and can exceed N1,000 per litre in northern regions. This price adjustment has influenced the decision to import additional petrol, as it has increased the demand for imported fuel.
Importing petrol involves more than just transportation. Marketers must handle storage issues and coordinate with various regulatory bodies to ensure compliance with all requirements. The process is carefully managed to avoid disruptions, with each parcel of petrol arriving in phases rather than all at once.
The importation of 141 million litres of petrol by major marketers highlights the dynamic nature of Nigeria’s oil sector. While local production at the Dangote refinery contributes to supply, the recent deregulation and price increases have led to a surge in imports. The careful management of this importation process, combined with stringent regulatory checks, aims to maintain a steady supply of petrol across the country.
