…import shrinks to 75,400 tonnes

During the first quarter of the year, Nigerian refineries produced 4.28 billion litres of Premium Motor Spirit (PMS) valued at N3.68 trillion.

Findings by New Telegraph indicated that in January, they sold 1.47 billion litres worth N1.26 trillion at a retail price of N860 per litres, In February, they produced and sold 1.34 billion litres valued at N1.15 trillion while in March, 1.47 billion litres, valued at N1.26 trillion was sold, following price reduction, improved domestic refining capacity and low imports. As at ast week, only 75,400 tonnes of PMS was imported through Apapa jetty by marketers.

Also, price of PMS is expected to drop in the coming weeks as the price of Brent dropped to $65 per barrel from $69.90 per barrel in the global market. The price of Brent is used globally to benchmark the prices of other crudes – major feed stocks and by extension petroleum products prices.

The price drop was partly fueled by the United States President, Donald Trump’s announcement of sweeping tariffs. In the first week of the month, only two vessels, Binta Saleh with 38,000 tonnes and Torm Damini, 37,400 tonnes brought petrol to the port.

Meanwhile, some filling stations have increased the price of PMS to N930 per litre from N860 per litre, following decision by Dangote Refinery to temporarily stop selling petroleum products in naira after a breakdown in negotiations for the naira-for-crude deal.

Refiners had agreed with the Federal Government to sell petroleum products in naira in exchange for the sale of crude oil in the local currency last year as the agreement was meant to reduce the impact of foreign exchange on the sale of crude oil and petroleum products and reduce pressure on the naira.

However, parties involved in the deal have not agreed to a new contract as the initial contract expires at the end of March 20, forcing Dangote refinery to source for crude oil in the international market.

Recall that the Major Energies Marketers Association of Nigeria (MEMAN) said that the landing cost of imported Premium Motor Spirit (PMS) dropped to N797.66 per litre. The association explained that the figure represented a reduction of N20.16 from the N817.82 per litre landing cost recorded on March 14.

According to its report, the on-the-spot rate at the NPSC-NOJ terminal dropped to N797.73 per litre from N817.9 charged in the previous week, noting that the average cost for 30 days also dropped to N851.76 from N854.15 per litre.

Also, MEMAN stressed thst the price of Brent crude was benchmarked at $70.58 per barrel, up from the $69.88 quoted on March 14. The group said while the exchange rate stood at N1,517.93 per dollar, the product quantity was calculated as 38,000 metric tonnes by the marketers.