Refinery Owners React as New Dangote Petrol Prices Emerge, Fuel Imports Continue
- Three major petroleum marketers have opted to import petrol from abroad despite Dangote refinery and other local options
- This decision has prompted mixed reactions from local refiners, including the Dangote Refinery which has started petrol production
- After long wait, the Dangote refinery has started the release of Premium Motor Spirit, popularly called petrol
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Domestic crude oil refiners and officials at the Dangote Petroleum Refinery has expressed concerns following reports that major oil marketers in Nigeria have decided to continue importation of petrol.
The refiners said the imported fuel are lower in quality compared with the ones produced by the Dangote refinery.
Source: Getty Images
Legit.ng had earlier reported that three major oil marketers were expecting vessels of imported petrol.
Dealers said about 141 million litres of PMS are being conveyed to Nigeria by oil vessels.
Refineries speak on importation of petrol
Reacting to development the Dangote refinery and the Crude Oil Refiners Association of Nigeria tackled the marketers decision.
Punch reports that they stressed that aside from the fact that the situation would increase the demand for United States dollars, the imported fuels were of low quality.
A source comment reads:
"These marketers are bringing in toxic, dirty fuels. They are importing substandard fuels, and if it’s permitted, they won’t stop.
"We have plenty of clean alternatives available, but they refuse to embrace them. They want to keep the status quo, but that will not happen."
Publicity Secretary of CORAN, Eche Idoko also condemned the continuous importation of fuel by marketers despite the coming on board of the Dangote refinery.
He said that the decision by the marketers is not doing justice naira even if it is within their rights to chose importation.
"For some importers, even after importing goods, they still need to go back to the CBN for a ‘Form M’ to access dollars. This means importing doesn't fully resolve the issue because they still rely on dollars within Nigeria or have to exchange their naira for dollars elsewhere, which weakens the naira’s value.
"The strength of a currency is largely determined by the demand for it from other currencies. If foreign currencies like dollars, francs, or cefa are seeking the naira to purchase Nigerian refined products, the naira's value would naturally appreciate."
New Dangote petrol price emerge
Legit.ng reports that findings show that 11Plc, TotalEnergies, AA Rano, and other independent marketers have begun lifting Dangote petrol via the Nigerian National Petroleum Company (NNPC) Trading Limited to retail outlets nationwide at N765.99 per litre.
The price sold to retailers is lower than the earlier announced N898 per litre, which is what NNPCL said it paid to lift petrol from Dangote Refinery.
The managing director of 11Plc, Tunji Oyebanji, confirmed on Thursday, September 19, 2024, that some marketers have started lifting via the NNPC, the sole off-taker of the product.
NNPC Retail, 11Plc, TotalEnergies, and AA Rano are among the first marketers that have picked the refinery’s product.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
