Even though two big refineries in Nigeria started producing petrol in the last three months, oil marketers are still bringing in and distributing petrol across the country. On Wednesday, we learned that marketers imported 2.3 billion litres of petrol from September 11 to December 5, 2024. This ongoing import of petrol goes against what some marketers had previously announced, saying they would stop imports and concentrate on supplying the local market.

Domestic refineries include the Dangote Petroleum Refinery in Lagos, boasting a 650,000 barrel-per-day capacity, and the Port Harcourt Refining Company in Rivers State, with a 210,000 barrel-per-day capacity. Currently, the Port Harcourt refinery operates at a reduced capacity of 60,000 barrels per day utilizing its older facilities. Dangote refinery initiated petrol sales in September, while the Port Harcourt refinery's Area 5 facility commenced operations last Tuesday. However, recent data indicates that 52,000 metric tonnes of petrol were imported over the past three days.

With 1,322.76 liters of petrol approximating one metric tonne, dealers imported roughly 68.74 million liters of fuel within that timeframe. Nigeria's dependence on petroleum product imports to meet domestic demand has persisted for years, even following the Dangote refinery's September commencement, largely attributed to pricing discrepancies and insufficient production. The Nigerian National Petroleum Company Limited has remained the sole purchaser from the refinery during this period.

Following extensive discussions, the Federal Government issued a statement from the finance ministry on October 11, 2024, declaring that oil marketers are now permitted to negotiate the purchase of petrol directly from the Dangote refinery, bypassing the NNPC.

This development facilitates direct negotiations between the parties involved. The Independent Petroleum Marketers Association of Nigeria has already formalized an agreement with the refinery for product offtake, while ongoing negotiations are taking place with the Petroleum Products Retail Outlets Owners Association of Nigeria.

In light of these changes, oil marketers have committed to halting fuel imports and concentrating exclusively on domestic supply.

Last week, PETROAN National President, Billy Gillis-Harry, informed our correspondent that its members would temporarily cease petrol imports for the next 180 days, coinciding with the anticipated operational commencement of the Dangote and Port Harcourt refineries, as well as their production ramp-up plans.

Additionally, major petroleum marketers have announced a suspension of petrol imports due to a significant increase in local supply from the Dangote Refinery, which has enhanced its operational capacity.

During a webinar last week, the association reported that its members have procured a total of 148 million litres of petrol from the Dangote refinery over the past 10 weeks, marking a substantial shift in the nation’s fuel supply landscape.

Nevertheless, IPMAN has not yet secured an import license. Recent documentation from the Nigerian Port Authority indicates that fuel imports by marketers have persisted. These products arrived via three vessels at the Apapa Port and Tin Can Port in Lagos State, and the Calabar Port in Cross River State.

An examination of the documents indicated that on Tuesday, December 3, 2024, a vessel named Binta Saleh, carrying 12,000MT (15.864 million litres) of petrol, arrived at the Apapa port at 8:12 am. The ship was represented by Blue Seas Maritime and was processed at the Bulk Oil Plant terminal

A vessel named Watson is scheduled to arrive at the Calabar port today (Thursday) by 4:52 pm, delivering 20,000 metric tonnes (26.44 million liters) of refined fuel. The handling of this vessel will be managed by Kach Maritime at the Ecomarine Terminal.

This situation suggests that the recent discussions led by Mele Kyari, the Group Chief Executive Officer of NNPCL, along with the Nigerian Midstream and Downstream Petroleum Regulatory Authority, aimed at ceasing petrol imports into the country, may not have reached a conclusive outcome.

The meeting included representatives from the Major Oil Marketers Association of Nigeria, the Depot and Petroleum Products Marketers Association of Nigeria, and significant stakeholders from companies such as 11 Plc, Matrix, and AA Rano, all of whom expressed growing confidence in the Dangote Refinery's capacity to satisfy the domestic fuel requirements and reduce import reliance.

A major marketer present at the meeting confirmed that discussions regarding the plan are still in progress.

In September, specifically on the 18th, three major oil marketers imported 141 million liters following the full deregulation of the downstream oil sector by the Federal Government. Each vessel was expected to deliver approximately 35,000 metric tonnes of PMS, totaling 105,000 metric tonnes (141 million liters).

From October 1 to November 11, 2024, the Nigerian National Petroleum Company Limited and other marketers imported over two billion liters of petrol. Documents revealed that NNPC and its partners brought in 1.5 million metric tonnes of PMS, 414,018.764 metric tonnes of diesel, and 13,500 metric tonnes of jet fuel, amounting to approximately N3 trillion or $1.8 billion.

During October, NNPCL and its affiliates imported 994,446.438 metric tonnes of PMS; Lagos received 555,121.617 metric tonnes, Warri 281,100 metric tonnes, Port Harcourt 94,224.821 metric tonnes, and Calabar 64,000 metric tonnes. From November 1st to the 11th, an additional 358,083 metric tonnes of Premium Motor Spirit (PMS), 112,500 metric tonnes of diesel, and 13,500 metric tonnes of aviation fuel were offloaded at Nigerian ports. Finally, between November 23rd and 28th, 78,800 metric tonnes (105.67 million liters) of petrol were discharged at the nation's maritime borders for distribution.