There are signs that the current pricing of Premium Motor Spirit (PMS) from Dangote Refinery may be influenced by subsidy considerations,leadership reports.
The Nigerian National Petroleum Company Limited (NNPCL) has been sourcing the product from the refinery to maintain supply across the country.
This could explain why oil marketers are not importing petrol or buying directly from Dangote Refinery, as it is neither profitable nor cost-effective for them.
NNPCL’s Executive Vice President for the downstream sector, Adedapo Segun, told reporters that while no marketer is prohibited from importing petrol, they are unwilling to do so due to unfavourable market conditions. He stated, “Marketers receive approvals from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to import automotive gas oil (AGO), aviation turbine kerosene (ATK), and Premium Motor Spirit (PMS).
“They then assess market indices and find that PMS is still being sold below cost. If they import it, they would incur losses. As a result,
