MEMAN Commends Increased Local Supply as Petrol Importation Declines
The Major Energy Marketers Association of Nigeria (MEMAN) has lauded the growing reliance on local fuel supply, primarily sourced from Dangote Refinery, as petrol importation in Nigeria sees a steady decline.
According to MEMAN, its members collectively sourced 148,463,142 litres of Premium Motor Spirit (PMS) between September 16 and November 24, 2024. This amounts to an average daily supply of 2,120,902 litres over a 10-week period.
MEMAN CEO, Mr. Clement Isong, shared these insights during a quarterly webinar for energy editors. He noted that the association’s members, including 11 Plc, Ardova Plc, Conoil, MRS, NNPCL, and TotalEnergies, collectively control 40-50% of Nigeria’s petroleum market share.
Although MEMAN members hold licenses to import PMS issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), they have increasingly turned to local sourcing from Dangote Refinery. This decision reflects the competitive advantages of the domestic supply framework, as outlined by MEMAN’s Head of Economic Intelligence Research Regulation, Ogechi Nkwoji, who represented Isong during the event.
Operational Highlights
Isong detailed the operational logistics of transporting petrol via trucks and vessels to marketers’ facilities in Lagos. The supply volume fluctuated weekly, peaking at 29,468,333 litres in Week 38 (September 16–22, 2024) and reaching a low of 1,600,000 litres in Week 46. A modest recovery occurred in Week 47, with 11,596,397 litres lifted.
Petrol Pricing Trends
Discussing fuel pricing, Isong revealed that the spot price of petrol averaged ₦971.14 per litre between October 10 and November 22, 2024, with a peak of ₦976.07 per litre. The cost per metric tonne was estimated at ₦708,390, calculated at a foreign exchange rate of ₦1,665.99 to the dollar.
Key factors influencing pricing included jetty locations, product quantities, and exchange rates, alongside local charges from the Nigerian Ports Authority (NPA) and NIMASA. Finance costs, which contribute 32% annually over a 30-day cycle, were also highlighted as a significant component.
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The Shift in Strategy
“This transition to local fuel sourcing marks a pivotal development in Nigeria’s petroleum industry,” Isong remarked. “With the Dangote Refinery increasingly central to meeting domestic petrol demand, the nation is poised for greater energy security and market stability.”
MEMAN’s endorsement of local supply signals a transformative moment in Nigeria’s fuel strategy, paving the way for a more self-reliant and sustainable energy future.
