See refineries owners reaction to continue import new Dangote petrol prices emerge

• 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.

Dangote refinery is selling fuel to some marketers lower than N800 per litre Photo credit: Tom Saater
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 people (marketers) are importing dirty fuels that are toxic.“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.”

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 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."

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 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.

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Source: Legit.ng