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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.”
US President Donald Trump has asserted that he is not jesting about his ambitions for a third presidential term, despite the constitutional restrictions in place.
While the U.S. Constitution prohibits any individual from serving more than two four-year terms, Trump indicated that it is premature to delve into such considerations.
Having assumed office for his second, non-consecutive term on January 20, Trump has hinted at his desire for a third term, addressing the matter more directly in a telephone conversation with NBC News.
“No, I’m not joking. I’m not joking,” Trump reiterated, though he acknowledged, “it is far too early to think about it.”
He hinted at potential avenues to pursue this goal without providing specific details.
According to the 22nd Amendment of the U.S. Constitution, U.S. presidents are limited to two terms, whether consecutive or not. To amend this constitutional provision would require a two-thirds majority in both houses of Congress, followed by ratification from three-fourths of the 50 state legislatures.
Some of Trump’s allies have suggested the feasibility of extending his stay in the White House beyond 2028. Trump himself has alluded to this notion on multiple occasions, often in a manner that challenges his political adversaries. Should he pursue another term after the November 2028 election, he would be 82 years old, having previously made history as the oldest president at the time of his inauguration.
The tradition of limiting presidential terms was established by George Washington in 1796. This practice was largely followed for over 140 years until Franklin D. Roosevelt broke the norm by winning a third term in 1940. Roosevelt, who led the nation through the Great Depression and World War II, sadly passed away during his fourth term in 1945, leading to the enactment of the term limits amendment in 1951.
Steve Bannon, a long-time adviser to Trump, expressed in a March 19 interview with NewsNation his belief that Trump will indeed run again in 2028. Bannon noted that he and others are exploring ways to facilitate this ambition, including reviewing the definition of term limits. “We’re working on it,” he stated, underscoring the ongoing discussions surrounding Trump’s political future.
Traders in Lagos have voiced their concerns regarding the significant decline in food sales, particularly for pepper, attributing the downturn to rising prices and the diminished purchasing power of local residents.
In interviews conducted by the News Agency of Nigeria (NAN), both traders and consumers shared their experiences regarding patronage as the Sallah celebration approaches.
Mr. Rabiu Zuntu, Chairman of the Tomato Growers and Processors Association of Nigeria (Kaduna chapter), linked the situation to the heightened prices of produce and the weakened purchasing capacity of consumers. He stated, “Pepper prices in the north are also steep, with a jumbo 50kg bag reaching as high as N150,000, compared to N60,000 to N70,000 just months ago. This price surge may adversely affect the Sallah festivities, as only a few consumers may afford these products.”
Zuntu further explained, “Currently, we are outside the pepper farming season. Insufficient rainfall has led to a scarcity of this commodity, with only a handful of farmers involved in irrigation. Many will resort to using dried pepper, which is more affordable during this time, although demand remains low. We anticipate an increase in demand as the celebration nears.”
Mrs. Mistura Balogun, a pepper vendor at Lawanson Market in Surulere, echoed these sentiments, noting the unusually low customer turnout. “It’s not just pepper that has become expensive; many other goods have seen price increases as well. Typically, this time of year should see a bustling market, but today is quite different. I have been at my stall since morning, and the number of customers is minimal,” she lamented.
Similarly, Mrs. Mojisola Gbadegesin, another pepper seller at Idi-Araba market, reported a stark decrease in patronage. “Despite the high prices, we usually see customers buying pepper, but this year is different. The market feels deserted, and business is sluggish,” she remarked.
Mrs. Judith Amen, also a foodstuff vendor, highlighted that the rising prices of pepper and other food items are likely to escalate further as the celebrations peak. “At the start of the week, a small bag of scotch bonnet pepper was priced at N70,000, and I expect prices to soar over the weekend due to Sallah. A good quality bag of rice is selling for N85,000, while lower-quality options range from N60,000 to N75,000. Although patronage is currently low, we anticipate an uptick a day before Sallah, but consumers will only purchase what they can afford,” she explained.
Mr. John Nwabueze, a trader in the Agege area, expressed frustration over the lack of customers as Eid celebrations begin. “Sales have been notably low, with people buying only what their budgets allow. The market has been unusually quiet, affecting all commodities, including rice. A 50kg bag of rice is priced between N76,000 and N78,000, yet sales remain sluggish this Sallah,” he noted.
Mrs. Amina Fakunle, a resident of the Alimosho area, remarked that the high cost of pepper would lead consumers to celebrate in a more subdued manner. “Just six pieces of pepper cost about N500, which is the lowest price available. With these prices, people will likely opt for a low-key celebration,” she stated.
Mr. David Oriafo, a resident of the Dopemu area, also commented on the lack of festive activity in the market. “I managed to purchase a few items for my family to save costs, but it’s evident that the usual festive buzz is missing. People are only buying what they can afford, much like myself,” he shared. (NAN)
A Nigerian boxer, Segun “Success” Olanrewaju, has died after slumping during a boxing match in Ghana.
The Secretary-General of the Nigerian Boxing Board of Control (NBB of C), Remi Aboderin confirmed the death of the boxer on Sunday.
The 40-year-old boxer, nicknamed “Success”, stumbled to the canvas while fighting Jon Mbanugu, a Ghanian, at Fight Night 15 of the Ghana Professional Boxing League at Bukom Boxing Arena, Accra, on Saturday.
Olanrewaju was not punched or near his opponent when he collapsed violently in round three of the light-heavyweight bout.
The referee called the match immediately, and medical aid was ushered into the ring.
Olarenwaju died after he was rushed to Korle Bu Teaching Hospital.
Ther boxer was a former West African and national light-heavyweight champion.
He competed in 24 bouts with 13 wins, eight losses, and three draws.
In 2022, Chukwuemeka Igboanugo, another boxer, also died after suffering a technical knockout (TKO) in a bout at the National Sports Festival (NSF) in Delta.
Igboanugo died after he took a fatal blow to the nose and did not survive the hit.