Petroleum marketers in Nigeria have resumed importing petrol as concerns mount over the Dangote Refinery’s inability to meet its production target.
This development has raised fears of potential fuel scarcity, forcing dealers to take matters into their own hands by bringing in petrol from abroad to supplement the country’s fuel supply.
Four vessels carrying a total of 123.4 million litres of Premium Motor Spirit (PMS) arrived at Nigerian ports between Friday and Sunday.
This move comes after it was revealed that the much-anticipated Dangote Refinery, with a capacity of 650,000 barrels per day, is not producing enough petrol to meet demand.
Marketers are worried about the consequences of the refinery’s failure to deliver on its promises.
Initially, the refinery had committed to producing 25 million litres of petrol daily.
However, oil dealers have reported that it is only managing to produce 10 million litres, far short of the country’s daily needs.
This shortfall has sent shockwaves through the market.
The fear of another round of fuel scarcity is very real.
Nigeria, which has long struggled with fuel shortages, had placed high hopes on the Dangote Refinery to stabilize the country’s fuel supply.
But with the refinery falling behind on production, the government and marketers are scrambling to fill the gap.
The federal government’s full deregulation of the downstream oil sector has allowed marketers to import PMS to make up for the shortfall.
In September, dealers took advantage of a favorable market price to bring in about 141 million litres of petrol.
This recent import of 123.4 million litres is another effort to prevent a fuel crisis in the country.
According to information obtained from the Nigerian Ports Authority (NPA), the four vessels docked at two major seaports in the country: Apapa Port in Lagos and Calabar Port in Cross River State.
The details of the import are significant.
On Friday, October 18, two vessels carrying 35,000 metric tonnes and 37,000 metric tonnes of PMS, respectively, arrived at Apapa Port.
Additionally, two smaller vessels, each carrying 10,000 metric tonnes of fuel, also docked at Apapa and Calabar ports on Friday, October 18, and Sunday, October 20.
Using the conversion rate of 1,341 litres per metric tonne, the total petrol import stands at approximately 123.4 million litres.
This large volume of fuel is expected to help ease the pressure on the country’s fuel supply chain, at least in the short term.
However, questions remain about the long-term reliability of the Dangote Refinery.
The refinery was hailed as a game-changer for Nigeria’s oil sector, with expectations that it would drastically reduce the country’s reliance on fuel imports.
For years, Nigeria, despite being one of the world’s largest oil producers, has depended on imported fuel due to its lack of refining capacity.
The completion of the Dangote Refinery was seen as a historic moment that would end the country’s dependency on imported fuel.
But the reality has been different.
Since commencing operations, the refinery has struggled to reach its production goals, leaving Nigeria vulnerable to fuel shortages once again.
The news of resumed fuel imports comes at a time when Nigerians are already grappling with high fuel prices due to global market fluctuations.
The removal of subsidies and full deregulation of the oil sector by the federal government has led to a rise in fuel prices at the pump.
Marketers have been quick to take advantage of the opportunity to import fuel at a fair market price, as the government has left pricing to market forces.
This situation, however, has also made it more difficult for the average Nigerian to cope with the increasing cost of fuel.
As the country faces inflation and economic challenges, the cost of petrol is a significant concern for both households and businesses.
The federal government, while pushing for deregulation, had pinned much of its strategy on the success of the Dangote Refinery to stabilize the market.
Now, with the refinery underperforming, the government may need to rethink its approach.
Industry experts are also raising alarm about the potential long-term impact if the Dangote Refinery continues to fail to meet its production targets.
Many had expected the refinery to not only serve Nigeria but also supply fuel to other African countries, boosting Nigeria’s influence in the region.
But as it stands, the refinery’s struggles are leading to questions about whether the country will be able to meet its domestic needs, let alone export fuel.
The decision by marketers to resume imports is a clear sign that confidence in the refinery’s immediate ability to meet demand is waning.
It also raises concerns about the future of fuel supply in Nigeria, particularly as global oil prices remain volatile.
The Dangote Refinery, once seen as a beacon of hope for Nigeria’s oil sector, is now at the center of a growing debate about the future of the industry.
Nigerians had hoped that the refinery would provide relief from the cycles of fuel shortages and price hikes that have plagued the country for years.
But the current situation has shown that much work still needs to be done to achieve energy security in Nigeria.
As the country waits for the refinery to reach its full potential, the resumption of fuel imports is a reminder of how dependent Nigeria remains on external sources for its energy needs.
