Nigeria’s import value of Premium Motor Spirit (PMS), also known as petrol, reached N3.22 trillion in the second quarter of 2024, the highest level ever recorded in the history of the country.
This is based on the Foreign Trade Report of the National Bureau of Statistics (NBS).
In the second quarter of 2024, fuel imports made up 25% of all imports during that time. In addition, the Q1 2024 petrol import bill of N3.2 trillion represents a 100% increase in the value of fuel imports over the same time in 2023, when it was valued at N1.6 trillion.
The amount of petrol imported into the nation in the first quarter of 2024 was N2.6 trillion, while the total for the first half of the year was N5.8 trillion.
The nation’s fuel import cost climbed from N3.1 trillion to N5.8 trillion during the same time in 2023. This indicates a rise of 87.09% over the time.
A weaker naira and increased crude oil prices are primarily blamed for the notable rise in petrol imports. At the start of the year, the naira was worth N907 to the US dollar. With the USD currently trading at around N1,550, this has declined in value by roughly N44.43%.
This is despite the extreme volatility seen in the foreign exchange market, where the Naira was once thought to be the world’s best-performing currency somewhere around April 2024.
The increase in fuel prices coincides with the start of fuel production at the $20 billion Dangote refinery located in Lekki, Lagos state. This comes after numerous surgical postponements and delays.
Between NNPCL And The Dangote Refinery
However, the Dangote refinery’s attempt to begin refining and then deliver petrol to the Nigerian market has run into difficulties due to the high price of the refinery’s products.
Because crude oil is an international commodity, President Tinubu had already allowed its sale to the Dangote refinery in Naira in Naira instead of USD.
The Nigeria National Petroleum Company Ltd (NNPCL) and the Dangote refinery have been arguing about who will distribute or sell to the Nigerian market. According to earlier media reports, the NNPC would be the only company to purchase petrol from the Dangote plant.
The NNPC refuted those reports, though, saying that anyone, even independent merchants, can buy petrol from the refinery. The NNPCL and the Dangote refinery are currently discussing the price of the company’s petrol.
Since the NNPCL raised the price of petrol at the pump from more than N500 per litre to N897 as part of efforts to lower the cost of its petrol subsidy, the matter of pricing has been contentious.
