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Dangote PMS is cheaper than imported PMS- Sources
The unending imbroglio between the Dangote refinery and the Nigerian National Petroleum Company Limited took a dramatic turn recently with insinuations that it is cheaper to import Premium Motor Spirit (PMS) into the country.
According to Yakubu Suleiman, the National Assistant Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), buying petrol is cheaper when they import than buying from Dangote Refinery. He stated that “Dangote’s price is higher than other places. Dangote sells at N995/litre and you have to bring your cargo to load.”
This medium undertook a comprehensive analysis of the dynamics in the PMS regime using various variables that determine the pricing and quality of PMS in Nigeria. The findings from the report indicated that the oil and gas sector in Nigeria is undergoing a phase occasioned by the entry of Dangote refinery into the market.
Energy experts consulted were of the opinion that it was unrealistic for imported PMS to be cheaper than a locally refined PMS. They cited the escalating dollar rates and the attendant landing cost associated with the importation regime.
According to findings, it costs $650,000 to $800,000 for freighting 30kt cargo from Europe to West Africa. NPA and NIMASA charge an average of $350,000 for each cargo, aside from other related costs. The implication is that all of these charges are eliminated when PMS is produced locally, as in the case of Dangote refinery.
It was also revealed that Dangote Refinery sells PMS 11 naira cheaper than what is imported into the country. This was confirmed by industry stakeholders who preferred anonymity. They also cited the quality of PMS as a factor in determining the retail price.
“Dangote PMS is of international standard, meeting the requirement in terms of Sulphur content, and that means that there would be less emission and improved engine performance as compared to what is imported into the country. The sad tale is that the regulatory agencies have been derelict in their functions and as such all manner of substandard PMS have been imported into the country, causing untold hardship on vehicle owners”
“The NNPCL in most instances imports blended PMS that does not meet regulatory standards, and it is also bought cheap, and with a higher profit margin when sold to motorists. The quality of PMS imported into the country is sourced from regions in Europe with high Sulphur content in the refining process. This cannot be said of the Dangote refinery because it is a new refinery and the process of refining undergoes strict adherence to the specified average Sulphur content per litre.”
Another source conversant in the refining of PMS stated that the entry of the Dangote refinery into the market was not good business for the NNPCL and the independent marketers.
“Buying from the Dangote refinery eliminates several bottlenecks and associated costs. These are areas where independent marketers make humongous profits. These marketers are not interested in the quality of the PMS they sell. They are out to maximize profit and that has been the regime.”
“ The challenge independent marketers have with buying from Dangote refinery is that there is a limit to the profit margin, which is not good for business for them, and as such, they prefer to continue to importation regime, where they buy very cheap adulterated products and add all the profits and pass down to the end users.”
It was also gathered that should Dangote refinery reduce the quality of its PMS to the standard imported and at the same price sourced from Europe, the independent marketers would patronize it. But this has not been the case and is a reason for the unending imbroglio between Dangote refinery, the NNPCL and independent marketers.
According to a top staffer of the NNPCL, the reason why NNPCL is at loggerheads with the Dangote refinery is the attempt to bring down the price of PMS in the country.
“The government refineries have been moribund for years and it is deliberate. The NNPCL’s major source of income is the importation of PMS, and if our local refineries work, the NNPC would go out of business as such the coming of the Dangote refinery is not good business for the revenue base of the NNPCL, hence the unending drama.”
“The only way the NNPCL can convince Nigerians about its sincerity of purpose is to make our local refineries work, despite the huge amount of monies expended over the years. The argument that imported PMS is cheaper than locally produced is indicative of the rot in the system, and why despite the presence of Dangote refinery, the quest for importation is still rife. In truth, we don’t have any business importing PMS into the country.”
“Of course, Dangote PMS is cheaper and of better quality, but it is not good business for the NNPCL and the independent marketers. This is what they don’t want Nigerians to know. At the end of the day, the end users are bearing the brunt of the actions of the NNPCL and independent marketers.”
Lere Olayinka, the Senior Special Assistant on New Media and Public Communications to Nyesom Wike, the former Governor of Rivers State and current Minister of the Federal Capital Territory (FCT), has responded to the recent appointment of Bashir Ojulari as the new Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd.).
Olayinka took to X (formerly Twitter) to address discussions surrounding this leadership transition. His post aimed to clarify that President Bola Ahmed Tinubu did not dismiss Mele Kyari, a northerner, to replace him with a southerner, as some speculated. Instead, Olayinka pointed out that Ojulari, like Kyari, hails from the northern region of Nigeria.
According to Olayinka’s post on his official X account, he emphasised that Bashir Ojulari is from Kwara State, located in North Central Nigeria. Additionally, the new Board Chairman, Ahmadu Musa Kida, originates from Borno State in the North East.
His post stated: “Bashir Ojulari, the new NNPCL CEO, is a northerner from Kwara State, North Central Nigeria. The new Board Chairman, Ahmadu Musa Kida, is also a northerner, from Borno State, North East Nigeria.”
Olayinka’s statement came in response to narratives suggesting that the appointment was politically motivated to favour one region over another.
By Israel Bulus, Kaduna
The Middle Belt Forum (MBF) has strongly condemned the extrajudicial killing of 16 travelers in Uromi, Edo State, while warning against retaliatory violence targeting Southerners in Northern Nigeria.
In a press statement released on Tuesday, MBF Spokesman Luka Binniyat denounced inflammatory threats from individuals claiming to represent Northern interests in response to the killings.
Recalled that the victims, were allegedly armed hunters, traveling from Port Harcourt to Kano when they were attacked by a mob that accused them of being kidnappers.
“The MBF strongly condemns the unlawful killing of any Nigerian citizen, including those who lost their lives in Uromi,” the statement read. “However, we categorically reject any attempt to use this tragic incident as a pretext to unleash violence against Southerners residing in Northern Nigeria.”
The forum assured that the Middle Belt would not become a battleground for reprisals, emphasizing that it remains a safe haven for all law-abiding Nigerians. It urged community leaders and youths to remain vigilant and prevent any attempts to instigate violence, calling for anyone with such intentions to be handed over to authorities.
The MBF also reaffirmed its commitment to justice for all victims of violence across Nigeria. The statement highlighted the ongoing security challenges facing Middle Belt communities, citing persistent attacks by armed herdsmen with little government intervention.
” We hope that the swift response to the Uromi killings would serve as a precedent for broader action against criminal elements terrorizing the region.
“Thousands of our people remain in captivity, and vast portions of our land are still under the control of violent outlaws—primarily Fulani militants,” the statement noted.
“Justice must be served across the board.”
The MBF concluded by reiterating its support for the ongoing investigation into the Uromi incident and calling for a fair and decisive crackdown on all forms of criminality across the country.
BY ANKELI EMMANUEL, Sokoto
The Deputy Speaker, Sokoto State House of Assembly, Kabir Ibrahim kware, has commended governor Ahmed Aliyu for executing numerous developmental projects without taking loan from any financial institution.
Ibrahim Kware whp gave the commendation when he led other members of the State Assembly on Sallah homage to governor Aliyu, added that, the governor is very prudent in managing resources to achieve results.
“There was never a time you approached us with a request for permission to borrow money from any financial institutions whether at home or abroad,”he affirmed.
This , according to him, is worthy of commendation considering the myriad people- oriented projects the governor is executing across the state.
Speaking on behalf of the State’s Judiciary, Sokoto State Chief Judge, Justice Muhammad Sa’idu Sifawa, commended the governor for the construction of additional Court rooms at the State High Court.
Justice Sifawa also expressed delight over the way and manner the governor responds to issues affecting the Judiciary, which he said, is a clear testimony of the good working relationship existing between the three arms of government in the state.
Responding to the commendations, governor Ahmed Aliyu appealed for more synergy among the three tiers of government in the overall development of the state.
A statement by Abubakar Bawa, the Press Secretary to governor Alhmed Aliyu reaffirmed his principal’s unwavering commitment of the executive arm to providing the direly needed dividends of democracy to the people of the state,in line with his campaign promises.
The governor also urged lawmakers to present all the needs of their constituencies for prompt and diligent implementation.
“”I want to assure you that my doors are always open for you at any given time, to listen to the demands of your people.”
He reminded them on the need to put politics aside and work together with the executive arm for the progress and even development of the people they represent.
Turning to the members of the State Judiciary, the governor appealed to Judges and Khadis to ensure the quick dispensation of justice, so as to decongest the correctional centres.
“It is worrisome to see how inmates are languishing in correctional centres for minor offences in the name of awaiting trial.
“We recently appointed seven additional Judges and 7 Khadis, which is the first in the history of Sokoto State.
“The idea is to enhance the manpower in our Judiciary so as to speed up the dispensation of justice,” he added.
The governor further assured the members of the Judiciary of his administration’s readiness to ensure their welfare at all times.