Three major oil marketers expect vessels of imported Premium Motor Spirit, also known as petrol, to arrive this week, barring any unforeseen circumstances, according to reports on Tuesday.
According to dealers, the tankers are transporting approximately 141 million litres of PMS to Nigeria after the Federal Government fully deregulated the downstream oil sector.
They also stated that the recent increase in the pump prices of petrol produced by the Dangote Petroleum Refinery and distributed by the Nigerian National Petroleum Company Limited on Monday had created space for PMS imports.
This occurred when the Nigerian Midstream and Downstream Petroleum Regulatory Authority decided that all imported PMS would be submitted to at least three key tests by the agency before being permitted for sale throughout the country.
On Monday, the NNPC stated that it would sell petrol from the Dangote refinery in the far north for more than N1,000 per litre. Olufemi Soneye, the company’s spokesperson, said in a statement, ‘NNPC Ltd. Releases Estimated Pump Prices of PMS from Dangote Refinery Based on September 2024 Pricing’.
According to Soneye, the price might reach N1,019 per litre in Borno State and N999.22 in Abuja, Sokoto, Kano, and other places.
The price will be N960 per litre in Oyo, Rivers, and other southern districts. According to an infographic released by the NNPC, the lowest price in Lagos and surrounding areas is N950.
Responding to this on Tuesday, a prominent marketer acknowledged that downstream sector deregulation had fully taken effect, emphasising that three dealers expect their products (PMS) this week.
The marketer, who spoke with our correspondent confidentially due to a lack of authority to speak on the subject, indicated that each vessel will bring in approximately 35,000 metric tonnes of PMS.
All things considered, the three dealers anticipate receiving approximately 105,000 metric tonnes of PMS this week.
Given the conversion rate of 1,341 gallons to one metric tonne, the marketers are bringing in around 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. 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 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.
When asked if each of the marketers’ three parcels would arrive this week, the dealer responded, “None of them will bring in the three parcels all at once. They bring in one parcel first, and then another parcel arrives about a week later. All of 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 can 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.”
When contacted, NMDPRA spokesperson George Ene-Ita stated that marketers with valid import licenses were free to import PMS, but the products must undergo three key tests 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 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.
