Petrol Prices Climb as Nigeria’s Fuel Imports Surge Despite Local Refinery Efforts, Experts Finger Ploy to Frustrate Dangote Refinery

Israel Adeleke 

OPEN TELEVISION NAIJA (OTN) News reports that Nigeria’s dependence on imported petrol has deepened as seven vessels carrying 154 million litres of Premium Motor Spirit is (PMS) has arrived at seaports nationwide this week, despite increasing local refining capacity.  

OTN News further reports that a document from the Nigerian Port Authority (NPA) reveals that between Monday, March 17, and Sunday, March 23, shipments totaling 115,000 metric tonnes of PMS are berthing at the Tincan port in Lagos, Lekki Deep Seaport, and the Calabar port. 

This influx which comes as the landing cost of imported PMS, droped to N797 per litre.  

However, OTN News observes that the surge in fuel imports coincides with a controversial halt in naira-for-crude transactions between the Dangote Petroleum Refinery and the Nigerian National Petroleum Company Limited (NNPCL). 

OTN News had earlier reported that Dangote announced the suspension of selling crude oil in naira instead sells in Dollars.

Subsequently, this suspension has sparked allegations that some forces are working to stop local refining in favor of importation.  

Furthermore, the National Publicity Secretary of the Crude Oil Refinery-owners Association of Nigeria, Eche Idoko, warns that suspending naira payments for crude oil undermines efforts to achieve energy security. 

He alleges that certain interests are unhappy with the Dangote refinery’s gradual reduction in petrol prices and are pushing for full-scale imports to maintain monopolistic control.  

OTN News further observes that despite Nigeria’s refining sector showing signs of growth, the Nigerian Midstream and Downstream Petroleum Regulatory Authority confirmed that the country’s three operational refineries still provide less than 50% of daily fuel demand, leaving a significant gap to be filled by imports.  

Meanwhile, petrol prices at loading depots continue to rise. Data from Thursday indicates that Rainoil Depot has raised its price from N835 to N860 per litre, while MEN Depot, despite no sales the previous day, now charges N860 per litre. 

Also, Pinnacle Depot has increased prices from N835 to N860 per litre, with Aiteo and Nipco adjusting their rates to N856 and N860 per litre, respectively.  

OTN News however observes that with fuel imports still dominating the market and depot prices climbing, Nigerians remain caught in a cycle of fluctuating petrol costs and an energy sector struggling for independence.