Domestic crude oil refiners and officials at the Dangote Petroleum Refinery are opposing the importation of Premium Motor Spirit, also known as petrol, by major oil marketers in Nigeria.
Oil refiners claim that imported fuels are of lower quality than those produced by the Dangote refinery, a position echoed by officials of the $20 billion Lekki-based plant.
Chronicle NG reported on Wednesday that three major oil marketers were expecting vessels of imported petrol this week barring any unforeseen circumstances.
Dealers said that around 141 million litres of PMS are being transported to Nigeria by oil boats as a result of the Federal Government’s complete liberalisation of the downstream oil sector.
They also stated that the recent increase in the pump prices of petrol produced by the Dangote refinery and distributed by the Nigerian National Petroleum Company Limited (NNPCL) on Monday had created space for PMS imports.
On Thursday, executives from the Dangote refinery and the Crude Oil Refiners Association of Nigeria confronted the marketers, emphasising that the scenario would raise demand for US dollars while also lowering the quality of imported fuels.
The source was added. “They are importing substandard fuels, and if allowed, they will not stop importing such. We have more than enough, but these guys don’t want it. They want the game to continue, but the game will not continue.”
Another plant employee added that Nigerians should be concerned about the introduction of subpar petroleum products into the country.
“You have to be concerned about the quality of the products they import. These are toxic fuels when you consider their blending process. All this is just to maximise profit,” the official stated.
Their viewpoints were supported by CORAN’s publicity secretary, Eche Idoko, who claimed that some of the poor fuels were blended in Malta or Togo.
He advocated for backward integration, claiming that others were concerned that Dangote would establish a monopoly.
“The fear marketers are having is that Dangote will become a monopoly, but that has been taken care of by Dangote subscribing to our association. With the Petroleum Industry Act in place and all the agencies in play, there is no way that Dangote can become a monopoly.
“But for people who are used to a particular way, the fear of what the unknown holds keeps them back. I think that’s where a lot of marketers are now. They don’t know what to expect in this new regime, and they are trying to struggle.
“So I would assure you this regime will pay them way better than the regime of importing petroleum products, where they sell to us substandard products blended in Malta or Togo and imported into our country,” Idoko stated.
Despite the Dangote refinery’s arrival, the representative for the domestic refiners’ association criticised marketers for continuing to import petroleum.
He stated that the priority at this moment should be on how to export refined products rather than bringing poor fuel into the country.
However, Idoko noted that several marketers who attempted to import petroleum products were unable to do so following the elimination of subsidies due to the foreign exchange crisis.
“For some people who are doing this import, at the end of the day, you import, and then you go back to CBN to give you ‘Form M’ to be able to access dollars. So, by importing, you are still not solving the problem because you still have to rely on dollars within Nigeria or use your naira to buy dollars from anywhere. And it will reduce the value of the naira. So you have not solved the problem.
“What enables the power of the currency is the level of its demand by other corresponding currencies. So, if you have dollars, francs, cefa, and other currencies chasing the naira because you want to buy a refined product of Nigeria, invariably, the value of the naira will appreciate,“ he explained.
Responding to concerns about the quality of imported fuels, the Nigerian Midstream and Downstream Petroleum Regulatory Authority announced that all imported PMS would undergo at least three significant tests before being sold throughout the country.
Its representative, George Ene-Ita, previously stated that marketers with approved import licenses were free to import PMS, but the goods must undergo three major tests by the agency.
“Also, before the smaller vessels bring it further inland to Nigeria, our people will fly to the place to see the product and carry out 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.
