The Nigerian National Petroleum Company (NNPC) Limited has disclosed why buying and importing petrol from Dangote Refinery is a challenge for oil marketers.
Addressing members of the press on Monday, Executive Vice-President, downstream at NNPC, Adedapo Segun shared that buying and importing petrol from Dangote Refinery is not profitable and cost-effective.
According to him, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been approving import permits.
“When the marketers go to NNPC to get the permit or licence to get the import, typically they will say they want to import x amount of automotive gas oil (AGO), aviation turbine kerosene (ATK), and some of them actually include petroleum motor spirit (PMS).
“They then go to market, check the market indices and say to themselves: PMS is still being sold below cost; if I bring it in, I’ll make a loss.
“Now they have approval to bring in ATK, AGO, and PMS, but they end up bringing only AGO and ATK.
“They do not bring in that PMS because the market is still not right for them. So, it is not because NNPC wants to be the sole importer or provider of PMS, it is because the other marketers won’t do it if it’s not profitable,” Segun said. (Sun)