Petrol import into Nigeria drops sharply in October as Dangote refinery ramps up production

The importation of premium motor spirit (PMS), commonly known as petrol, into Nigeria, has significantly declined in the first two weeks of October as the Dangote Refinery increased production to meet local demand.

This is according to S&P Global Commodity Insights ship-tracking report published on Tuesday.

Data from S&P Global Commodities at Sea shows that only 280,400 barrels of gasoline and blend stock were imported into Nigeria during the first week of October, ending on the 6th, via a single Medium Range (MR) vessel.

This marks a sharp decline from the weekly average of 1.3 million barrels recorded in August.

According to the report, in the week ending October 13, only one product tanker was reported to have shipped gasoline to Nigeria, carrying 290,567 barrels from Antwerp to Lagos.

These two October shipments are significantly lower than the 12 cargoes dispatched in the first half of both August and September.

Since October 8, no additional gasoline shipments have been brought into Nigeria.

The report indicates that the decline in import activity marks the first disruption to the previously well-established flow of fuel, primarily from Northwest Europe to West Africa, driven by the emergence of Dangote refinery’s domestic refining capacity.

“There is no schedule for gasoline coming from Europe to Nigeria at the moment. The rest will have to come from whatever is in the Offshore Lome market,” one trade source said, speculating that the new refinery might meet at most a quarter of domestic demand.

Meanwhile, the report notes that traders have warned that Nigeria could still face a substantial fuel deficit in the absence of imported supply.

What you should know

Following the sale of crude oil to the Dangote Refinery in Naira earlier this month, the federal government authorized petroleum marketers to lift petrol directly from the 650,000 barrels per day (bpd) refinery, bypassing the Nigerian National Petroleum Company (NNPC) Limited.

This move marks the full deregulation of the downstream sector, signaling the end of the costly but widely supported fuel subsidy.

Since September, the Dangote Refinery has supplied petroleum products to the market, with retail prices initially ranging between N850 and N900 per litre.

However, with the NNPC no longer serving as the sole off-taker of petrol from the refinery, retail prices have risen from approximately N998 to N1,030 per litre.

Upon reaching full operational capacity, the Dangote Refinery aims to meet local fuel demand while also exporting to neighbouring African countries and the Caribbean, thereby disrupting Nigeria’s petroleum importation industry.

naijaboy756:
And Naira is still crashing against the dollar.. What is the effect of the FX not used for importation?

Demonic government in power

JASONjnr:
Very soon, they will come up with defamatory statement about how Dangote fuel is destroying our vehicles and not good enough for consumption and why Nigerians should boycott it.... Just to resume their import from Malta.

ALTERNATEID:


There is a reason the world bank guy said we should stay true to the ongoing reform for at least 15 years.

You guys simplify our economic challenges by thinking just two weeks of decline in PMS import will automatically result in Naira stability. It’s not that quick and easy. We need to remain consistent for at least a year before we can start counting the impact of the forex savings on our local currency. There is no shortcut to any of these things. It takes time and consistency for result to start showing.

ALTERNATEID:


There is a reason the world bank guy said we should stay true to the ongoing reform for at least 15 years.

You guys simplify our economic challenges by thinking just two weeks of decline in PMS import will automatically result in Naira stability. It’s not that quick and easy. We need to remain consistent for at least a year before we can start counting the impact of the forex savings on our local currency. There is no shortcut to any of these things. It takes time and consistency for result to start showing.

naijaboy756:
same consistency and time Buhari needed, got , used and damaged Nigeria

Asiwaju is asking for the same time

naijaboy756:

Oga dollar was used to import those products before now right?

So since October, we did not need that! Dollar was saved as FX or let’s say that the pressure that amount of dollars was supposed to exert was taken off and it ought to have an immediate impact on the value of the Naira right ?

Yesterday Naira crashed further to over N1,700

Are you an APC supporter? Let me know how to package the insult

Namaster:
It's nice to finally put a face to the SCOURGE of Nigerians.

And it's DANGOTE and his GREEDY partners.

A NEWLY operational refinery has taken over the supply of 1 MILLION of the 1.3 Million barrels that Nigeria needs.

That's MORE than 75% of the Nigerian Petroleum supply being handled by Dangote.

That's a MONOPOLY!

Or near enough rhat it makes no difference.

Every problem the refinery is supposed to SOLVE has been EXACERBATED.

Dangote pays Naira for crude oil YET the Naira continues to PLUMMET.

He cut out the MIDDLEMAN (NNPCL) and instead of price reduction, he JERKED UP the price.

The transportation savings from NOT having to pay the shipping fees of importing refined petroleum products is NOT passed to customers.

Dangote and his ELITE backers are taking advantage of Tinubu's shitty policies to DESTROY Nigeria.

ALTERNATEID:


Buhari did not implement any reform. He continued with the wasteful pattern of previous administration and even took it to another level.

Tinubu has departed from that wasteful pattern of spending all we earn plus loans to subsidies PMS and keep the exchange rate low. We are now on a new course and we need to remain consistent to it if we want to see result.

ALTERNATEID:


lol. You can’t get an immediate impact. PMS is not imported on cash and carry basis. A lot of these transactions are done on credit. Even if we don’t import anything for 6 months, we will still keep paying for what we’ve imported previously and servicing our debts. There is no immediate gain. It takes time for the gains to start trickling in.

Namaster:
It's nice to finally put a face to the SCOURGE of Nigerians.

And it's DANGOTE and his GREEDY partners.

A NEWLY operational refinery has taken over the supply of 1 MILLION of the 1.3 Million barrels that Nigeria needs.

That's MORE than 75% of the Nigerian Petroleum supply being handled by Dangote.

That's a MONOPOLY!

Or near enough rhat it makes no difference.

Every problem the refinery is supposed to SOLVE has been EXACERBATED.

Dangote pays Naira for crude oil YET the Naira continues to PLUMMET.

He cut out the MIDDLEMAN (NNPCL) and instead of price reduction, he JERKED UP the price.

The transportation savings from NOT having to pay the shipping fees of importing refined petroleum products is NOT passed to customers.

Dangote and his ELITE backers are taking advantage of Tinubu's shitty policies to DESTROY Nigeria.

ALTERNATEID:


There is a reason the world bank guy said we should stay true to the ongoing reform for at least 15 years.

You guys simplify our economic challenges by thinking just two weeks of decline in PMS import will automatically result in Naira stability. It’s not that quick and easy. We need to remain consistent for at least a year before we can start counting the impact of the forex savings on our local currency. There is no shortcut to any of these things. It takes time and consistency for result to start showing.

tundegan:
This is the true meaning of "game changer".

Dangote refinery will transform the Nigeria economy in ways we never imagined.

ALTERNATEID:


There is a reason the world bank guy said we should stay true to the ongoing reform for at least 15 years.

You guys simplify our economic challenges by thinking just two weeks of decline in PMS import will automatically result in Naira stability. It’s not that quick and easy. We need to remain consistent for at least a year before we can start counting the impact of the forex savings on our local currency. There is no shortcut to any of these things. It takes time and consistency for result to start showing.

ALTERNATEID:


lol. You can’t get an immediate impact. PMS is not imported on cash and carry basis. A lot of these transactions are done on credit. Even if we don’t import anything for 6 months, we will still keep paying for what we’ve imported previously and servicing our debts. There is no immediate gain. It takes time for the gains to start trickling in.

naijaboy756:
Na now you know that Buhari was wasteful

But Tinubu always supported him and his government

Do you guys take us for fools or what?