Naira Under Pressure As Petrol Imports Skyrocket By 207%

A significant surge in petrol imports has been recorded in Nigeria, with the daily import volume rising from 5.9 million litres in May to 18.1 million litres in June. This represents a staggering 207 per cent increase, according to the latest data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The sudden spike in petrol imports has put additional pressure on the naira, as the demand for foreign exchange from marketers has also increased. An analysis of the NMDPRA fact sheet reveals that the total petrol import rose sharply from 182.9 million litres in May to 543 million litres in June. This development has sparked concerns about the nation's fuel supply dynamics, particularly with the Dangote Refinery maintaining that it has the capacity to meet the country's domestic consumption needs. The refinery's management has argued that allowing continued imports undermines local refining efforts. However, oil marketers and the NMDPRA have countered that ensuring supply security and maintaining price stability for consumers is crucial, especially when domestic production fluctuates. They also argue that relying solely on a single source creates a monopoly. Despite the dispute, the NMDPRA figures show that local refineries recorded a 10 per cent surge in crude oil receipts, from 578,000 barrels per day to 632,000 bpd, between May and June. The total stock sufficiency of petrol also increased from 16.2 days to 19.7 days in June, representing a 22 per cent uptick. Meanwhile, the supply of Automotive Gas Oil (AGO) or diesel declined by 14 per cent, while kerosene receipts dropped by 31 per cent. The natural gas data for the first six months of the year shows that total utilisation fluctuated between 4.888 Bscf/d and 5.142 Bscf/d. The Ajaokuta-Kaduna-Kano (AKK) gas pipeline project has reached a 94.3 per cent completion rate, while the OB3 gas pipeline project has achieved a 96 per cent completion rate, indicating progress in the country's efforts to expand its gas utilisation capabilities.