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Petrol Imports Restart as Dangote Refinery Falls Short of Production Goals

Published by Tope Fakinlede on October 21st, 2024.

Petrol Imports Restart as Dangote Refinery Falls Short of Production Goals

Petroleum marketers have begun importing petrol again to bolster Nigeria’s fuel supply due to the Dangote Refinery’s inability to meet demand.

Between October 18 and October 20, four vessels delivered a total of 123.4 million liters of Premium Motor Spirit (PMS) to Nigerian ports.

Previously reported concerns highlighted the Dangote Refinery’s shortfall, as it was only producing 10 million liters of petrol daily—well below its promised capacity of 25 million liters from a maximum output of 650,000 barrels per day.

The federal government’s deregulation of the downstream oil sector has opened the door for increased PMS imports, allowing dealers to take advantage of favorable market prices. In September, approximately 141 million liters of PMS were imported.

Documents from the Nigerian Port Authority indicate that the vessels docked at Apapa Port in Lagos and Calabar Port in Cross River State. Specific deliveries included 35,000 metric tonnes at Apapa on October 18, 37,000 metric tonnes at the same port that day, and an additional 10,000 metric tonnes at both Apapa and Calabar on October 20.

Using a conversion rate of 1,341 liters per metric tonne, the total importation amounts to around 123.4 million liters of petrol.