MEMAN applauds local supply as petrol importation reduces
CHIGOZIE AMADI
Nigeria’s petrol supply chain has undergone a significant shift as members of the Major Energy Marketers Association of Nigeria (MEMAN) praised the growing reliance on local supply through Dangote Refinery supply as petrol importation continues to decrease
The statistics made available by MEMAN shows that between September 16 and November 24, 2024, MEMAN members sourced a total of 148,463,142 litres of Premium Motor Spirit (PMS) by trucks only while the overall total is 251,797,142 litres daily over a span of 10 weeks.
Mr Clement Isong, CEO of MEMAN, shared these figures during a quarterly webinar for energy editors, emphasising that MEMAN’s members, including major companies like 11 Plc, Ardova Plc, Conoil, MRS, NNPCL, and TotalEnergies, together hold around 40-50% of Nigeria’s petroleum market share.
Though MEMAN members have the licenses to import PMS, issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), they have opted for local supply from Dangote Refinery due to a competitive market framework, as explained by Ogechi Nkwoji, MEMAN’s Head of Economic Intelligence Research Regulation, who represented Isong at the event.
Isong highlighted that the products were transported via trucks and vessels to marketers’ facilities in Lagos, demonstrating operational flexibility within the supply chain.
He stated that the total volume of petrol lifted by MEMAN members over the 10-week period fluctuated, with the largest volume of 29,468,333 litres in Week 38 (September 16–22, 2024) and a low of 1,600,000 litres in Week 46.
He said however, there was a slight rebound in Week 47, with 11,596,397 litres of petrol lifted.
Isong also discussed the current price of petrol, noting that the spot price, based on a 30-day pricing trend from October 10 to November 22, 2024, stands at ₦976.07 per litre, with an average price of ₦971.14 per litre during the same period.
“The cost of petrol per metric tonne was estimated at ₦708,390, based on a foreign exchange rate of ₦1,665.99 to the dollar.
Explaining the factors influencing fuel pricing in Nigeria, Isong pointed out key cost components such as the jetty location (e.g., ASPM), the standard product quantity of 38,000 metric tonnes, and the exchange rate derived from the Central Bank of Nigeria’s (CBN) weighted average rate.
He also noted that finance charges contribute 32% per annum over a 30-day cycle, while additional local charges, including those from the Nigerian Ports Authority (NPA) and NIMASA, further affect the pricing structure.
“This shift in Nigeria’s fuel supply strategy marks a key development in the country’s petroleum market, with the Dangote Refinery now playing an increasingly central role in meeting the nation’s petrol demand,” he added.
