Despite inaugurating Dangote refinery, FG willing to issue petrol import licences

Despite inaugurating Dangote refinery, FG willing to issue petrol import licences

Nigeria may not have seen an end to importation of fuel despite the recent inauguration of the Dangote Oil Refinery with capacity to produce 650,000 barrels per day, which is in excess of what is needed locally.

Indeed, the Federal Government has announced that it is ready to give licences to willing imported of petrol.

Currently, only the Nigerian National Petroleum Corporation Limited is importing petrol and selling to marketers at subsidised rate.

The subsidy regime is due to end in June this year and the FG insists there is no going back on the decision.

Aliko Dangote said at the inauguration of his refinery last week Monday that the first products from the plant would be delivered at July 2023 ending.

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As the FG prepares to hand off fuel importation, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said on Tuesday that it was ready to issue licences to companies interested in petrol importation.

Chief Executive Officer of NMDPRA, Farouk Ahmed, announced this on Tuesday, May 31.

He said the criteria for importing kerosene and diesel would be applicable for the importation of the product.

He also said several conditions would be met before granting the willing applicants the licences.

Ahmed said, “There are a lot of conditions to be met before you are given a licence to import petrol. I cannot give you all the rundown now but I can tell you that just the way marketers import diesel or jet kero, there are conditions for all that and the same condition will apply to those who want to import premium motor spirit (PMS).”

Only companies that are lessees producing crude oil and/or condensates or who are holders of crude oil refining licences are eligible to supply wholesale petroleum liquids (including petrol importation), according to section 197 (2) of the Petroleum Industry Act (PIA) 2021.

While the PIA empowers the NMDPRA to issue licences to refiners or producers of crude oil, the regulation, in sections 73 (3) and 111 (1), provides that the minister of petroleum must approve such licences.

Despite inaugurating Dangote refinery, FG willing to issue petrol import licences