Three Marketers to Import 141 Million Litres of Petrol This Week

Three major oil marketers are preparing to bring in about 141 million litres of Premium Motor Spirit (PMS), commonly known as petrol, into Nigeria this week. This comes as the Federal Government’s decision to fully deregulate the downstream oil sector continues to reshape the country’s petroleum landscape.

According to industry sources, the three marketers are currently expecting their imported fuel shipments. Each vessel will carry around 35,000 metric tonnes of PMS, with a total of 105,000 metric tonnes of fuel expected to arrive. When converted to litres using the industry standard (1 metric tonne = 1,341 litres), this brings the total volume of imported petrol to approximately 141 million litres.

Deregulation Paves the Way for More Imports

The deregulation of the downstream oil sector has allowed private oil marketers to resume importing petrol more freely, a role previously dominated by the Nigerian National Petroleum Company Limited (NNPCL). The government’s deregulation efforts were further highlighted by recent adjustments in fuel prices at the pump, driven by supply from the Dangote Petroleum Refinery.

Earlier this week, the NNPCL released new estimated prices for petrol, with pump prices expected to surpass N1,000 per litre in some northern states like Borno. Meanwhile, in other regions like Abuja, Kano, and Sokoto, prices may hover around N999. In the South, including states like Oyo and Rivers, the cost is projected to be around N960 per litre, with Lagos witnessing the lowest price at N950.

Regulatory Oversight for Fuel Imports

While marketers are moving swiftly to import fuel, stringent regulatory measures remain in place. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has mandated that all imported PMS will undergo rigorous testing before it can be sold to the public. George Ene-Ita, spokesperson for the NMDPRA, emphasized that marketers with valid import licenses must comply with these testing protocols to ensure the product meets safety and quality standards.

“Every shipment of imported PMS will be subjected to multiple tests by our team before it is cleared for distribution,” Ene-Ita noted. These tests include checks on the product’s quality and compliance with Nigerian standards. The NMDPRA also inspects the petrol at both its origin and at Nigerian ports, ensuring the safety and reliability of the product before it is allowed into the domestic market.

Challenges and Timelines for Petrol Imports

While the oil marketers are optimistic about the timely arrival of their fuel shipments, they cautioned that the entire process might not occur all at once. “The arrival of shipments is staggered. You don’t bring in all three vessels at the same time. The first vessel might arrive this week, while subsequent shipments come in later, typically within a week,” explained a marketer familiar with the import process.

Importing fuel in large quantities also requires logistical planning and storage capacity, which is why marketers bring in their shipments in phases. The process is complex and requires coordination with regulatory authorities, port operators, and storage facilities.

Conclusion

As Nigeria continues to adjust to the new realities of a deregulated oil market, the imminent arrival of 141 million litres of imported petrol is expected to bolster supply and ease pressures on the market. However, with petrol prices already rising in response to international market conditions and domestic factors, the role of marketers and regulators in managing imports will be crucial in ensuring stable supply and price control in the coming weeks.