Refiners’ Association Urges Use of Locally Produced Fuel as Marketers Plan to Import PMS
The Crude Oil Refiners Association of Nigeria (CORAN) has expressed strong opposition to the plans by petroleum marketers to import Premium Motor Spirit (PMS), commonly known as petrol, despite the availability of fuel from the Dangote Refinery.
In a statement released by CORAN’s Publicity Secretary, Eche Idoko, the association condemned the move, emphasizing the importance of utilizing locally refined products to support the domestic oil industry.
The reaction follows reports that 141 million liters of PMS are being shipped to Nigeria by oil vessels in response to the federal government’s recent full deregulation of the downstream oil sector. This development comes shortly after the Nigerian National Petroleum Company Limited (NNPCL) unveiled a new price list for its retail outlets nationwide, reflecting the lifting of Dangote-produced petrol.
According to the NNPCL, the revised prices will see petrol sold between N950 to N1,019.22 per liter, depending on the location. This adjustment follows the successful lifting of petrol from the Dangote Refinery, which has a production capacity of 650,000 barrels per day.
The price changes have sparked controversy between the Dangote Refinery and NNPC, with the state-owned oil company claiming it purchased petrol at a pump price of N898 per liter from Dangote, a figure the refinery disputes.
Unsatisfied with the current price regime, some petrol marketers are now considering the importation of PMS. CORAN, however, has raised concerns about the quality of imported fuel, alleging that some of the products are substandard and blended in Malta or Togo before being shipped to Nigeria.
“I would assure you this regime will pay them way better than the regime of importing petroleum products, where they sell to us substandard products blended in Malta or Togo and imported into our country,” Idoko said.
He also addressed concerns that Dangote could become a monopoly in the market, noting that the refinery has already joined CORAN and is subject to the regulations of the Petroleum Industry Act (PIA).
“The fear marketers are having is that Dangote will become a monopoly, but that has been taken care of by Dangote subscribing to our association. With the Petroleum Industry Act in place and all the agencies in play, there is no way that Dangote can become a monopoly,” Idoko added.
Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stated that all imported petrol will be subjected to three rigorous tests before it is allowed to be sold in the country. NMDPRA spokesperson George Ene-Ita emphasized that while marketers with import licenses are permitted to import PMS, the products must meet strict quality standards.
Aliko Dangote, President of the Dangote Group, had previously asserted in May 2024 that the commencement of operations at his refinery would end Nigeria’s reliance on imported fuel.
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