The Nigerian National Petroleum Company Limited (NNPCL) has said that marketers will find it difficult buying petrol from Dangote Refinery and Petrochemical Company or importing same because it is presently not a profitable business.
The Executive Vice-President, Downstream of the NNPC, Adedapo Segun, offered the explanation when he spoke with newsmen.
During the interaction in Abuja, Segun said although the Nigerian Midstream and Downstream Petroleum Regulatory Authority has been approving import permits, it is not profitable for the marketers to import petrol or buy from Dangote refinery.
He said: “When the marketers go to NNPC to get the permit or licence to get the import, typically they will say they want to import x amount of automotive gas oil (AGO), aviation turbine kerosene (ATK), and some of them actually include petroleum motor spirit (PMS).
“They then go to market, check the market indices and say to themselves: PMS is still being sold below cost, if I bring it in, I’ll make a loss.
“Now they have approval to bring in ATK, AGO, and PMS, but they end up bringing only AGO and ATK.
“They do not bring in that PMS because the market is still not right for them.
“So, it is not because NNPC wants to be the sole importer or provider of PMS.
“It is because the other marketers won’t do it if it’s not profitable.”
