FG issues fresh petrol import permits

The Nigerian government has taken another step toward stabilizing its domestic fuel market by issuing new petrol and diesel import permits for the third quarter of 2026, spanning July through September. This decision, made by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), aims to counteract potential supply shortages and maintain a steady flow of petroleum products across the nation. The move follows reports indicating declining fuel stock levels and reduced gasoline production at the Dangote Petroleum Refinery, one of the largest refineries in Africa.

According to a report by Argus Media, a leading global energy intelligence firm, the recent approvals have been granted to several major downstream operators. These include AA Rano, AYM Shafa, Bono Energy, Nipco, Matrix Energy, and Pinnacle Oil. Each company has received specific quotas for importing Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO). For instance, AA Rano and Matrix Energy were each given permits to import 180,000 metric tonnes of petrol, while AYM Shafa received 120,000 metric tonnes. Pinnacle Oil was allocated 150,000 metric tonnes of petrol. Diesel permits followed similar patterns, with AYM Shafa receiving 60,000 metric tonnes and Pinnacle securing 45,000 metric tonnes. Notably, Nipco did not receive diesel import permissions this time around.

The issuance of these permits marks a continuation of efforts by the federal government to manage the delicate balance between increasing local refining capacity and ensuring sufficient fuel availability nationwide. Earlier in the year, the NMDPRA had already approved a substantial amount of petrol imports—approximately 720,000 metric tonnes—for the second quarter. However, the current round of permits suggests that the government is preparing for higher volumes, potentially exceeding the 800,000 metric tonne threshold set for the second quarter.

Fuel stock levels have been a growing concern, with data indicating a decline in both petrol and diesel reserves. As of May, petrol stock sufficiency had fallen to 16 days, down from 17.7 days, while diesel stock sufficiency dropped to 31 days, a decrease of eight days compared to prior periods. These reductions are attributed primarily to decreased gasoline production at the Dangote Refinery, which saw its output drop by 16 percent to 44.7 million liters per day. Conversely, diesel production at the facility rose by four percent to 24.5 million liters daily.

Amidst these developments, the dynamics in the downstream oil market have shown signs of change. Depot prices for PMS in Lagos have experienced a noticeable decline, with several major terminals adjusting their rates. Rain Oil led the charge with an N18 per liter reduction, bringing its price down to N1,162 per liter. Other notable players such as A.A Rano, AIPEC, and Bono also reduced their prices, reflecting broader trends in the region. Meanwhile, the Dangote Refinery maintained a near-stable position, with its PMS price rising marginally to N1,176 per liter.

Diesel prices have seen even sharper declines in certain areas, particularly in Port Harcourt, where Matrix and Sigmund reduced their AGO prices by N70 and N68 respectively. These fluctuations underscore the evolving landscape of Nigeria's petroleum sector, influenced heavily by local refining capacities and logistical considerations.

As the situation unfolds, experts suggest that the immediate effects on consumers will hinge on how swiftly the changes at the depot level translate into retail pump prices. Factors such as haulage expenses, operational costs, and profit margins play crucial roles in determining the final consumer prices. With more domestic supply coming online, especially from major refining facilities, it is anticipated that the market will remain dynamic, requiring continuous monitoring and strategic management to ensure stability and affordability.