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By, Biliki Coker
Market Forces is currently at play in Nigeria oil sector..and there are public expectations that at the end of the day prices will go down for end consumers.
YOUNEWS posits that Oil marketers now have options in the market to buy from; Dangote Refinery and now Port Harcourt refinery, aside modular regineries.
They may also turn to importation of fuel if the prices set by both domestic refineries surpass their profit margins, thereby making it more financially viable for them to rely on imported fuel rather than locally produced stock.
The importation option is surely an option; a total sum of 78,800 metric tonnes representing 105.67m litres of petrol have been imported into the country in the last five days spanning November 23 and November 28.
The product was conveyed in four vessels with the latest to be received today (Thursday, November 28, 2024), according to documents obtained from the Nigerian Ports Authority on Wednesday.
38,500 metric tonnes of petrol imported on Monday, November 25 berthed at the Lagos Apapa port (Bulk Oil Plant).
Similarly, a Bedford ship conveying 10,000mt of PMS will berth at the Ebughu jetty, Calabar port in Cross Rivers on Thursday, November 28.
Two vessels that arrived on Saturday, November 23 is still waiting to berth. The ships are carrying 30,300mt of fuel.
It also revealed that 11,000 metric tonnes of base oil was imported while the 20bn Dangote refinery received crude oil worth 133,986 metric tonnes on Monday, November 27, 2024.
YOUNEWS understand that NNPC had yet to release any price for the products from the refurbished Port Harcourt refinery, however, a high price would discourage marketers.
Dangote currently sells his petrol at N970/litre, while imported petrol is around that price.
Industry analysts are now saying that there is the possibility that the NNPC would review its prices downward when the Port Harcourt refinery comes fully on stream.
For now, the state-owned oil company, NNPCL sells a litre of PMS at N1,040 or N1,045 while the Dangote refinery just reviewed its price from N990 to N970 for marketers buying a minimum of two million litres.
Naturally, by following the law of demand and supply independent marketers would only buy from the NNPC if its price is cheaper than that of Dangote or vice versa.
On the outplay of market forces, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike said
“With the Port Harcourt refinery now working, we are anticipating that any moment from now, NNPC will give us its price. Once NNPC releases its price, we will start loading from NNPC. That is subject to if it is cheaper than that of Dangote.
“The last NNPC price was N1,040 and N1,045 per litre. But I know there will be a review of prices because there has been a crash in prices globally.
“So, we are expecting a review. Once that review is done, I will be able to give you the actual price. I know they are reviewing it. They are on top of the matter,” the IPMAN spokesman said.
But in a message sent to journalists on Wednesday night, the NNPC spokesperson said the national oil firm had not started selling its products from the Port Harcourt refinery to other oil marketers.
He was reacting to an earlier claim by the Petroleum Products Retail Outlets Owners Association of Nigeria that the newly rehabilitated Port-Harcourt refinery was selling at N1,045/litre to oil marketers.
He noted that only NNPCL retail stations are receiving products from the refinery.
He said, “We have not yet commenced bulk sales, and we have not yet opened the purchase portal as we are still finalizing the necessary processes.”
He further stated its current stock was procured from the Dangote Refinery and includes fees and levies.
“At present, the products we are selling are what we bought from the Dangote Refinery, which includes NMDPRA fees. The product from PH is currently for our retail stores. Our prices are regularly reviewed and adjusted as required.”
