Nigerian oil marketers are opposing the importation of Premium Motor Spirit (PMS), or petrol, by domestic crude oil refiners and officials at the Dangote Petroleum Refinery. They claim some imported fuels are of lower quality compared to those produced by the refinery. The PUNCH reported that three major oil marketers expect vessels of imported petrol this week, with about 141 million litres of PMS being transported to Nigeria by oil vessels following the Federal Government’s deregulation of the downstream oil sector.
The recent hike in petrol pump prices by the Dangote refinery in Nigeria has allowed room for petroleum products (PMS) imports. Officials at the refinery and the Crude Oil Refiners Association of Nigeria have criticized marketers for importing toxic, low-quality fuels and claiming that if allowed, they will continue to import them. They have urged Nigerians to be concerned about the importation of substandard petroleum products, as they are toxic and blending them in Malta or Togo for profit maximization. The Publicity Secretary of CORAN, Eche Idoko, has also alleged that some of the substandard fuels were blended in Malta or Togo. He called for backward integration, citing concerns that Dangote would become a monopoly. The situation has raised concerns about the quality of the products imported and the potential for a monopoly.
“Marketers are worried that Dangote will monopolize the industry, but that worry has been allayed by Dangote’s membership in our association. Dangote cannot turn into a monopoly with the Petroleum Industry Act in effect and all the agencies involved.
However, those who are accustomed to something in particular are held back by their dread of the unknown. I believe that’s where most marketers are at the moment. They are making an effort, but they have no idea what to anticipate under this new government.
I can thus guarantee you that this regime will pay them far more than the one of importing petroleum products, whereby they offer us inferior goods mixed in Malta or Togo. and imported within our nation,” Idoko said.
The Nigerian domestic refiners’ association has condemned the continuous importation of fuel by marketers, despite the Dangote refinery’s arrival. The spokesperson emphasized the need to focus on exporting refined products instead of importing substandard fuel. Some marketers attempted to import petroleum products but were unable to do so due to the removal of subsidies due to the foreign exchange crisis. Importing petroleum products reduces the value of the naira, as marketers still rely on dollars within Nigeria or use their naira to buy dollars from anywhere, reducing the value of the naira. The power of the currency is influenced by the level of demand by other corresponding currencies, which can increase the value of the naira. The Nigerian Midstream and Downstream Petroleum Regulatory Authority has declared that all imported petroleum products (PMS) must undergo at least three major tests before being allowed for sale across the country.
Our testing procedures must be applied to the products at the ports. Before we give them permission to transport the fuels to their terminals, the products must meet the requirements.
Additionally, our personnel will travel to the location to inspect the product and conduct certain tests to make sure the correct specifications are followed before the smaller vessels convey it farther inland to Nigeria.
The places where the products are made are also tested. Additionally, additional testing will be done on the products once they arrive to make sure they satisfy the standards before they are put on the market, the speaker added. The entire process is closely monitored to ensure that only high-quality products are distributed to consumers. This rigorous quality control system helps maintain the integrity of our fuel supply chain and ensures customer satisfaction.
