The rapidospace news (an online news platform) revealed that, barring any unanticipated events, three major oil marketers were expecting boats bringing imported motor spirit (PMS) also know as petrol this week.
Following the Federal Government’s complete liberalization of the downstream oil sector, dealers reported that around 141 million liters of PMS are being transported to Nigeria through oil vessels.
The commencement of major oil marketers in Nigeria in importing Premium Motor Spirit, often known as petrol, has been met with opposition by domestic crude oil refiners and officials at the Dangote Petroleum Refinery.
Officials from the $20 billion Dangote refinery in Lekki, Lagos confirmed the claim made by oil refiners that some imported fuels were of inferior quality in comparison to those made in Dangote Refinary.
“These people (marketers) are importing dirty fuels that are toxic,” an impeccable source at the Dangote refinery who spoke to one of our correspondents in confidence, declared.
In response, representatives of the Crude Oil Refiners Association of Nigeria and the Dangote refinery questioned the marketers on Thursday. They stressed that the imported fuels were of poor quality in addition to the fact that the scenario would raise demand for US dollars.
The source added. “They are importing substandard fuels and if allowed they will not stop importing such. We have more than enough, but these guys don’t want it. They want the game to continue, but the game will not continue.”
It will pay them way better than the regime of importing petroleum products, where they sell to us, substandard products blended in Malta or Togo and imported into our country,” Idoko stated.
The domestic refiners’ association spokesperson condemned the continuous importation of fuel by marketers despite the coming on board of the Dangote refinery.
He said the focus at this time should be on how to export refined products instead of bringing substandard fuel into the country.
Idoko, however, recalled that some marketers who tried to import petroleum products could not do so after the removal of subsidies due to the foreign exchange crisis.
“For some people who are doing this import, at the end of the day, you import, and then you go back to CBN to give you ‘Form M’ to be able to access dollars. So, by importing, you are still not solving the problem because you still have to rely on dollars within Nigeria or use your naira to buy dollars from anywhere. And it will reduce the value of the naira. So you have not solved the problem.
What enables the power of the currency is the level of its demand by other corresponding currencies. So, if you have dollars, francs, cefa, and other currencies chasing the naira because you want to buy a refined product of Nigeria, invariably, the value of the naira will appreciate,“ he explained.
Responding to concerns about the quality of imported fuels, the Nigerian Midstream and Downstream Petroleum Regulatory Authority declared that all imported PMS would be subjected to at least three major tests by the agency before being allowed for sale in the country.
Its spokesperson, George Ene-Ita, earlier said marketers with approved import licenses were free to import PMS, but stressed that the products must be subjected to three major tests by the agency.
“The products must be subjected to our testing protocols at the ports. The products must conform to stipulated standards before we authorise them to move the fuels to their terminals.
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Also, before the smaller vessels bring it further inland to Nigeria our people will go to the place to see the product and carry out some tests to ensure the right specification is upheld.
Tests are also done at the products’ origins. And when the products come in, before they are released to the market, further tests would be conducted to ensure that they meet the specifications,” he stated.
