The Nigerian National Petroleum Company Limited has explained why marketers may have difficulty obtaining petrol from the Dangote Refinery and Petrochemical Company or importing it themselves.
The Executive Vice-President, Downstream, at the NNPC, Adedapo Segun, provided the explanation during an interview with journalists.
During the discussion in Abuja, Segun stated that while the Nigerian Midstream and Downstream Petroleum Regulatory Authority has been approving import permits, it is not financially advantageous for marketers to import petrol or purchase it from the Dangote refinery.
He said: “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.”
