Oil marketers have attributed the drop in volume of imported Premium Motor Spirit, popularly known as petrol, into Nigeria to limited foreign exchange access and price instability in both domestic and international markets.

According to reports, oil importation has plummeted by over 67 per cent in less than eight months.

Speaking to State House correspondents in Abuja, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, disclosed that petrol importation declined from 44.6 million litres per day in August 2024 to 14.7 million litres as of April 13, 2025.

This decline, he explained, was offset by a significant increase in local supply, which grew by 670 per cent, driven by the phased restart of the Port Harcourt Refining Company in November 2024 and rising output from modular refineries across the country.

However, marketers and industry stakeholders have attributed the decline not solely to improved local refining but also to critical economic factors affecting importation.

The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said many marketers had been forced to suspend importation activities due to volatile global crude prices and uncertainties in pricing models.

“Marketers are no longer bringing in products because of some trading factors. The interlude between ordering and delivery, during which crude oil prices can fluctuate, makes importation risky. Unlike before, when prices were benchmarked solely on the international market, we now have to consider both international and domestic pricing dynamics to avoid significant financial losses,” he said.

On his part, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Dr Billy Gillis-Harry, pointed to the scarcity of foreign exchange as a major constraint on importers.

“Every import of petroleum product—whether diesel, aviation fuel, petrol or lubricants—requires forex access. Do we have enough dollars for that? If access to forex is limited, then so be it. We must support any source, including local refineries, that can assure our energy security.”

Giving further explanation, an Oil and gas analyst, Olatide Jeremiah, also noted a growing shift among marketers towards domestic sourcing, particularly from the Dangote Refinery.

“Reports from the ports indicate that many marketers are now lifting directly from Dangote. The number of retail outlets affiliated with the refinery has increased from two to six. This reflects growing confidence in its supply capacity,” he said.

Jeremiah added that frequent price changes by the Dangote Refinery have made it more strategic for marketers to source locally, as this allows them to hedge against unpredictable losses tied to fluctuating import costs.

He noted, “The fluctuation of exchange rate and the instability in crude oil prices are among the worries of oil importers, a reasonable number of them are set to embrace local refinery, in turn, it has reduced imports. Most of them can’t sell above their landing cost as the big Elegant (Dangote) now determines the petroleum market price.”

In January, the NMDPRA disclosed that over 50 per cent of Nigeria’s daily petrol consumption—about 25 million litres—was still being met through imports.

But the sharp fall in import volume, amid rising domestic production, signals a potential turning point for the country’s fuel supply dynamics.



https://punchng.com/price-instability-behind-petrol-import-reduction-marketers/