Recent data reveals that over two billion litres of Premium Motor Spirit (petrol) were imported by the Nigerian National Petroleum Company Limited and other marketers within a 42-day period starting from October 1 to November 11, 2024.
While dealers increased their importation of PMS, Automotive Gas Oil (diesel), and Aviation Turbine Kerosene (jet fuel), local refiners raised concerns and called for a halt in granting import licenses to marketers.
Marketers defended their actions by pointing out the deregulation in the downstream petroleum sector, allowing them to seek products from the most cost-effective sources.
They mentioned a reduction in refined product costs due to sector deregulation, although some petrol consumers disputed this claim.
During this period, documents showed that 1.5 million metric tonnes of PMS, 414,018.764 metric tonnes of diesel, and 13,500 metric tonnes of jet fuel were imported, amounting to approximately N3tn or $1.8bn.
Despite Nigeria’s status as a major oil producer, the country continues to rely on fuel imports due to insufficient domestic refining capacity.
Efforts are being made to increase stability in the downstream sector by transitioning to naira-based sales of crude oil and refined products, with hopes of reducing fuel imports and enhancing domestic supply.
The Crude Oil Refinery Owners Association of Nigeria has called on the government to refrain from granting import licenses to international traders, emphasizing the need to protect the emerging refining industry in the country.
While the NNPC had previously stated a shift towards sourcing from domestic refineries, the state-owned company clarified that it may still import fuel when necessary based on economic viability.
Additional import licenses have been issued for the importation of 2.5 million metric tonnes of PMS, with plans to discharge the product in Lagos, Warri, Port Harcourt, and Calabar.
Some petroleum marketers are considering halting PMS imports following agreements to directly source from the Dangote refinery, marking a potential shift in the industry.
This new development reflects ongoing changes in the fuel importation landscape and efforts to enhance domestic refining capacity in Nigeria.