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Petrol Imports Persist Despite Local Refinery Operations In Nigeria
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PETROL IMPORTS PERSIST DESPITE LOCAL REFINERY OPERATIONS IN NIGERIA

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Despite the commencement of petrol production by the Dangote Petroleum Refinery and the Port Harcourt Refining Company, oil marketers in Nigeria have continued to import and distribute petrol nationwide. Documents reveal that between September 11 and December 5, 2024, marketers imported approximately 2.3 billion litres of petrol, defying earlier commitments to prioritize domestic supply.

The Dangote Refinery, with a capacity of 650,000 barrels per day, began selling petrol in September, while the Port Harcourt refinery’s Area 5 facility, capable of 60,000 barrels per day, started operations last Tuesday. However, findings show that in just three days, a total of 52,000 metric tonnes of petrol—equivalent to 68.74 million litres—was imported into Nigeria through three vessels that docked at the Apapa, Tin Can, and Calabar ports.

This persistent reliance on imports follows intense discussions aimed at curbing petrol importation. On October 11, the Federal Government authorized oil marketers to negotiate directly with the Dangote Refinery, leading to agreements between the refinery and associations such as the Independent Petroleum Marketers Association of Nigeria (IPMAN). Despite these agreements and statements from marketers promising to halt imports for 180 days, significant volumes of imported petrol continue to flow into the country.

Industry data indicate that between October and November alone, over two billion litres of petrol were imported by the Nigerian National Petroleum Company Limited (NNPCL) and other marketers. In October, Lagos received 555,121 metric tonnes of petrol, with additional deliveries distributed across Warri, Port Harcourt, and Calabar. By November, another 358,083 metric tonnes of petrol and 112,500 metric tonnes of diesel had arrived at Nigerian ports.

The recent surge in imports underscores the challenges facing efforts to eliminate reliance on imported fuel. Stakeholders, including NNPCL and regulatory authorities, have engaged in high-level discussions to address the issue. However, the continued inflow of imported products suggests lingering doubts about the capacity of local refineries to meet domestic demand.

As of now, marketers argue that production levels at the Dangote and Port Harcourt refineries remain insufficient to sustain the market. This situation persists despite claims by major marketers of sourcing 148 million litres of petrol from the Dangote Refinery in the past 10 weeks, highlighting the complex dynamics of Nigeria’s fuel supply system and the slow transition toward full reliance on local production.

"This represents a significant development in our ongoing coverage of current events."
— Editorial Board

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