Dealers indicated that approximately 141 million litres of
PMS are en route to Nigeria, following the complete deregulation of the
downstream oil sector by the Federal Government.
They also pointed out that the recent increase in petrol
prices set by the Dangote Petroleum Refinery and announced by the Nigerian
National Petroleum Company Limited on Monday has created an opportunity for PMS
imports.
Additionally, the Nigerian Midstream and Downstream
Petroleum Regulatory Authority has stated that all imported PMS will undergo at
least three significant tests by the agency before being permitted for sale
nationwide.
On Monday, NNPC revealed that petrol sourced from the
Dangote refinery would be sold at prices exceeding N1,000 per litre in the
northern regions.
Spokesperson Olufemi Soneye shared this information in a
statement titled, ‘NNPC Ltd Releases Estimated Pump Prices of PMS from Dangote
Refinery Based on September 2024 Pricing.’ Soneye noted that prices could reach
as high as N1,019 per litre in Borno State and N999.22 in Abuja, Sokoto, Kano,
and other locations.
In southern regions such as Oyo and Rivers, the price will
be N960 per litre, while the lowest price, according to an infographic from
NNPC, is N950 in Lagos and surrounding areas.
In response to this news on Tuesday, a major marketer
confirmed that the deregulation of the downstream sector is now fully
operational, emphasizing that three dealers are expecting their PMS shipments
this week.
A marketer, who requested anonymity as they were not
authorized to discuss the issue, informed our correspondent that each ship is
anticipated to deliver approximately 35,000 metric tonnes of PMS.
Consequently, the three dealers are projecting a total of
around 105,000 metric tonnes of PMS for this week, assuming no unforeseen
circumstances arise.
Based on the conversion rate of 1,341 litres per metric
tonne, this indicates that the marketers are set to import roughly 141 million
litres of petrol.
“Most marketers often import three parcels for this kind of
transaction and the lowest parcel is about 35,000 metric tonnes of PMS. Now,
because of how the business is run, you see marketers bringing in between two
and three parcels.
“This week, we expect about three marketers to bring in
products. However, some of these imports are not cast in stone, in the sense
that the influence of many regulatory authorities is still there. So it is not
that you will just go and bring in products and you then start to sell them.
“The regulators, such as the NMDPRA, have to look at the
quality, flash points and so many other things that should be taken into
consideration before the product comes in. And when it lands, they will take
samples and check them in their labs,” the marketer stated.
With regard to the potential delivery of the three parcels
for each of the marketers this week, the dealer provided a response, “All of
them are not going to bring in the three parcels at the same time. They bring
in a parcel first and later, say in one week time or so, another parcel comes
in. All these imports have storage implications.
“It is not something you do in a day. You can’t bring in one
vessel today (Tuesday) and you bring in another one on Saturday. No, it is not
done like that. This is not the importation of 20,000 or 30,000 litres of PMS.”
Upon inquiry, the NMDPRA representative, George Ene-Ita,
confirmed that marketers with authorized import licenses are permitted to
import PMS. However, he emphasized that the products must undergo three
critical tests conducted by the agency.
“The products must be subjected to our testing protocols at
the ports. The products must conform to stipulated standards before we give
them the authorisation to offload to their terminals.
“Also, before the smaller vessels bring it further inland to
Nigeria our people will fly to the place to see the product and carryout some
tests to ensure the right specification is upheld.
“Tests are also done at the products’ origins. And when the
products come in, before they are released to the market, further tests would
be conducted to ensure that they meet the specifications,” he stated.