For inside the Nigerian downstream sector, things don dey take new shape as locally produced fuel don become cheaper than the one wey dey import. According to the Major Energies Marketers Association of Nigeria (MEMAN) latest report, the cost of importing petrol into the country now dey above the Dangote refinery gantry price of N1,215 per litre.
MEMAN report wey release on July 29 show say merchants now dey pay more to import petrol than to collect am from the Lekki refinery wey dey produce 650,000 barrels per day. During the review period, Brent crude average $90 per barrel, and this one plus the exchange rate pressure don increase the cost of bringing refined petroleum products from abroad.
Because of this development, the Independent Petroleum Marketers Association of Nigeria (IPMAN) don again call on the Federal Government to ban fuel importation. IPMAN claim say Nigeria current refining capacity, especially with the Dangote Refinery, enough to supply local demand. Chinedu Ukadike, wey be IPMAN National Publicity Secretary, tell The Punch Newspaper say continuing to import petrol when we get substantial local supply dey put unnecessary pressure on our foreign exchange reserves and dey lower the competitiveness of domestic refineries.
Ukadike also talk say the new import licenses wey dem authorize no don help to cut retail fuel prices because imported cargoes dey priced higher than the locally refined supply. The MEMAN report show say Dangote coastal PMS pricing na N1,195 per litre, while the gantry price remain N1,215 per litre including regulatory duties.
This trend no stop for petrol only. The price data wey just release dey support wetin petroleum marketers don dey yarn say locally refined fuel now be the better option for Nigeria downstream market. With crude prices still high and exchange rate dey fluctuate, the advantage dey shift to local refineries wey fit produce cheaper.
