Three Marketers Abandon Dangote Fuel, Import 141 Million Litres of Petrol
by by Pascal Oparada · Legit.ng News · Join- Three major oil marketers have ditched the Dangote petrol and opted for imports instead
- Reports say the three oil marketers are expecting about 141 million litres of petrol loaded in three vessels
- The development comes as the NNPC released the price of petrol from the Dangote Refinery on Monday, September 16, 2024
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Three major oil marketers are expecting vessels of imported petrol this week.
The dealers disclosed that vessels are bringing about 141 million litres of petrol into Nigeria following the Nigerian government's total deregulation of the downstream oil sector.
Increase of Dangote petrol responsible for imports
The marketers also disclosed the recent rise in prices of Dangote petrol issued by the Nigerian National Petroleum Company Limited (NNPC) on Monday, September 16, 20024, allowed for petrol imports.
According to reports, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said that all imported petrol would undergo about three major tests before being sold in the market.
Legit.ng previously reported that the NNPC announced that it would sell Dangote petrol above N1,000 per litre in the north.
The company disclosed in a statement signed by its spokesman, Olufemi Soneye, that the price may go for as high as N1,019 per litre in Borno State and N999.22 in Abuja, Sokoto, Kano, and other states.
The national oil firm said Dangote petrol could sell for N960 in Oyo and Rivers, while the lowest commodity price from the $20 billion refinery will be N950 per litre in Lagos.
Oil marketers to import 141 million litres
Punch reports that the oil marketers confirmed that the deregulation of the oil sector had fully begun, saying that three dealers are expecting their products any moment soon.
The oil marketer reportedly said that each dealer expects about 35,000 metric tonnes of petrol.
The report said that, based on the 1,341 litres to one metric tonne, the marketers would bring in about 141 million litres of PMS.
NMDRA’s spokesman, George Ene-Ita, said marketers with approved import licenses were free to import petrol, but the agency must test the products three times.
Why marketers cannot buy directly from Dangote
The development comes as NNPC said that oil marketers cannot import or buy petrol from the Dangote refinery because the product is not viable and cost-reflective.
Dapo Segun, executive vice president of the NNPC's downstream division, said no one was excluded from petrol imports.
NNPC clarifies the position of petrol import by marketers
He said the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has approved import permits.
According to Segun, marketers always ask for permits from NMDPRA to import petroleum products, including PMS, but they do not import petrol because the market is not profitable.
On buying products from Dangote Refinery, Segun said that the Dangote petrol is sold at the market price and that the NNPC is the only company to offtake the product for now.
Marketers speculate new petrol prices from the Dangote refinery
Legit.ng earlier reported that Marketers have demanded direct access to petrol from the Dangote Refinery, criticising the grip the Nigerian National Petroleum Company (NNPC) Limited has on the market.
The national publicity secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said the market should be open to all, as the NNPC is committed to willing buyers and sellers.
The NNPC had debunked claims that it is the sole buyer of the petrol from the $20 billion Dangote Refinery, adding that the facility can sell petrol directly to any marketer.