Three major oil marketers are expected to import 141 million litres of Premium Motor Spirit (PMS) into Nigeria this week. The imports follow the Federal Government’s full deregulation of the downstream oil sector, with strict testing procedures set by regulatory authorities before the petrol is allowed for sale.

Three major oil marketers are preparing to import around 141 million litres of Premium Motor Spirit (PMS), commonly referred to as petrol, into Nigeria this week, barring any unforeseen circumstances.

According to sources, this large shipment of PMS is facilitated by the recent full deregulation of the downstream oil sector by the Federal Government, allowing room for such imports.

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will subject all imported PMS to three major tests before authorising its sale across the country, ensuring compliance with quality standards.

The three oil marketers are expecting their products to arrive in vessels carrying approximately 35,000 metric tonnes each, translating into 141 million litres of petrol based on the conversion rate of 1,341 litres per metric tonne.

This development comes as the Nigerian National Petroleum Company (NNPC) announced new petrol pump prices from the Dangote Refinery.

The prices range from N950 per litre in Lagos to as high as N1,019 per litre in Borno State.

The deregulation of the sector has fully taken effect, allowing more flexibility for private oil marketers to import PMS.

However, regulatory bodies will still play a crucial role in ensuring that all imported petrol meets the required safety and quality standards before distribution.

NNPC has revealed that petrol from Dangote Refinery will be sold at N950.22 in Lagos and N1,019.22 in Borno, with variations across other states.

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has released the estimated retail prices for petrol being distributed from the Dangote Refinery to stations nationwide.

According to NNPC’s statement on Monday, petrol will be sold for N950.22 per litre in Lagos, while residents of Borno State will face the highest price of N1,019.22 per litre.

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The prices vary across states, with residents of Sokoto, Oyo, the Federal Capital Territory (FCT), and Kano expected to pay N999.22, N960.22, and N992.22 per litre, respectively.

These prices are based on September 2024 pricing following the refinery’s first loading of Premium Motor Spirit (PMS) at its Lagos facility in Ibeju-Lekki.

NNPC confirmed it purchased PMS from Dangote Refinery at N898 per litre, which followed initial pricing disputes between both entities.

While Dangote Refinery sold fuel in US dollars, Naira transactions for crude oil will commence in October 2024. NNPC highlighted that it is prepared to pass on any price discounts offered by Dangote Refinery to the general public.

The statement clarified that NNPC is paying Dangote Refinery in dollars, as stipulated by the Petroleum Industry Act (PIA), and reiterated that the government no longer sets PMS prices, which are now negotiated on an arm’s length basis.

The naira gained 4.8% against the US dollar, its biggest increase in two months, after Nigeria’s debut domestic dollar bond sale. The currency closed at 1,558 naira per dollar, the strongest level since August 21.

Nigeria’s naira recorded its highest gain in nearly two months, appreciating by 4.8% against the US dollar following the successful sale of the country’s first-ever domestic dollar bond.

According to Bloomberg, the currency surged to 1,558 naira per dollar on Wednesday, marking its strongest level against the dollar since August 21.

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This leap represents the naira’s largest jump since July 22. The boost in value came after Nigeria’s domestic dollar bond attracted $900 million in subscriptions, part of a $2 billion bond programme registered with the Securities and Exchange Commission.

Wale Edun, Nigeria’s Minister of Finance, revealed that the $500 million bond, with a five-year maturity and a 9.75% coupon, is just the first tranche of the programme.

The structure allows the government to absorb additional subscriptions up to the full $2 billion limit.

Edun further stated that the bond’s proceeds will be used for key sectors of the economy, as authorised by President Bola Tinubu.

The bond issuance drew interest from a wide range of investors, both local and in the diaspora, as well as institutional investors.

The bond’s success and high demand have improved investor sentiment, which contributed to the naira’s recent strength.

Analysts believe this could mark a turning point for the currency as it stabilises amid ongoing economic reforms.