Dangote Officials, Refiners Tackle Marketers Over Imported PMS
Officials at the Dangote Petroleum Refinery, alongside domestic crude oil refiners, have voiced strong opposition to the recent importation of Premium Motor Spirit (PMS) by major oil marketers in Nigeria, citing concerns over fuel quality and economic implications.
In the wake of full deregulation of the downstream oil sector, oil marketers are importing approximately 141 million litres of petrol into Nigeria. These imports come as the Nigerian National Petroleum Company Limited (NNPCL) adjusts the price of locally-produced petrol from the $20bn Dangote refinery, based in Lekki, Lagos.
Officials from Dangote and the Crude Oil Refiners Association of Nigeria (CORAN) have raised concerns over the substandard quality of the imported fuels. A confidential source within the Dangote refinery expressed dismay at the imports, alleging, “These people are importing dirty fuels that are toxic,” adding that such imports undermine efforts to meet Nigeria’s fuel needs domestically.
Eche Idoko, Publicity Secretary of CORAN, echoed these concerns, accusing marketers of bringing in lower-grade fuels, often blended in Malta or Togo. He emphasized the importance of backward integration, saying, “The focus should now be on exporting refined products, not importing substandard fuels.”
Amid these concerns, Idoko reassured that Dangote cannot become a monopoly in the Nigerian market, thanks to the checks in place under the Petroleum Industry Act. He highlighted the marketers’ reluctance to fully embrace the changes brought by the local production of PMS and the end of subsidy regimes.
The importation of PMS also poses economic risks, according to Idoko. He warned that continued reliance on imported fuels would exacerbate Nigeria’s foreign exchange challenges, stressing that the demand for US dollars for fuel imports would further devalue the naira.
In response to the concerns about the quality of imported PMS, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) stated that all imported fuels must undergo rigorous testing. According to the agency’s spokesperson, George Ene-Ita, PMS imports will be subjected to a three-tier testing process to ensure they meet Nigeria’s quality standards before being allowed into the market.
As the debate over fuel imports and domestic production rages on, stakeholders continue to navigate the challenges of a fully deregulated market while working towards safeguarding the nation’s economy and fuel quality.
