Crude oil supplied to domestic refineries rose by 17 per cent in August, strengthening local refining output as petrol imports fell sharply during the month, according to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The regulator’s latest monthly factsheet showed that crude oil receipts by domestic refineries increased from 585,000 barrels per day (bpd) in July to 683,000 bpd in August.
The increase in crude supply coincided with a significant decline in the volume of Premium Motor Spirit (PMS), commonly known as petrol, imported into the country.
According to the data, petrol imports fell by 26 per cent from 19.7 million litres per day in July to 14.6 million litres per day in August.
Daily Trust reports that the development highlights the growing contribution of domestic refineries to Nigeria’s petrol supply, with the Dangote Petroleum Refinery accounting for the bulk of locally supplied PMS during the period.
The NMDPRA said total daily PMS receipts increased by 11 per cent from 45.5 million litres in July to 50.5 million litres in August.
Of this volume, Dangote Refinery supplied 35.87 million litres per day to the domestic market, representing about 71 per cent of total PMS receipts during the month.
The regulator’s data showed that Dangote Refinery produced an average of 41.94 million litres of PMS daily in August. Of the volume produced, 35.87 million litres per day were supplied to the domestic market, while 9.73 million litres were exported.
The refinery also ended the month with 360.4 million litres of PMS in stock.
The rising crude receipts to domestic refineries come amid efforts to reduce Nigeria’s dependence on imported petroleum products by increasing local refining capacity and ensuring adequate crude supply to refineries operating within the country.
Amidst the rising fuel prices, stakeholders have called for the strengthening of the naira-for-crude arrangement and adequate supply of feedstocks to domestic refineries.
The NMDPRA data also showed that petrol consumption declined during the month. PMS consumption fell by 14 per cent from 48.3 million litres per day in July to 41.5 million litres per day in August.
The regulator explained that its consumption figures were based on volumes trucked out into the domestic market.
With domestic production increasing and imports declining, the August figures showed a widening gap between locally supplied petrol and imported PMS.
Dangote Refinery’s domestic PMS supply alone stood at 35.87 million litres per day, more than twice the 14.6 million litres per day recorded as total petrol imports during the month.
The trend also reflected an improvement in petrol stock sufficiency, which increased marginally from 22.4 days in July to 22.9 days in August.
The increase in crude supply is particularly significant for domestic refining as the availability of feedstock remains a critical factor in determining the ability of refineries to sustain production and reduce the country’s reliance on imported petroleum products.
Beyond PMS, the NMDPRA data showed a sharp reduction in diesel imports during the month.
Automotive Gas Oil (AGO) imports fell by 84 per cent, from 7.9 million litres per day in July to 1.3 million litres per day in August.
However, domestic AGO supply also declined by 16 per cent to 13.2 million litres per day during the period.
Brent crude rises above $106 as Iran-US talks stall
Brent crude climbed above $106 a barrel on Thursday as diplomatic efforts between the United States and Iran showed little progress, raising concerns over prolonged geopolitical risks to global oil supplies.
November Brent futures rose 3.17% to $106.35 a barrel by 4:28 a.m. ET, while November West Texas Intermediate (WTI) gained 2.56% to $94.52.
Speaking at the United Nations General Assembly, Iranian President Masoud Pezeshkian blamed the United States and Israel for escalating tensions and vowed that Iran would continue the conflict “until our last breath.”
An adviser to Iran’s Supreme Leader, Mojtaba Khamenei, also warned that Tehran could widen the conflict to the Indian Ocean if the US or Israel launched another attack, according to reports cited by The Wall Street Journal.
MUFG analyst Soojin Kim said the resumption of flows through the Strait of Hormuz and the restart of a Saudi pipeline could ease supply pressures. However, tanker attacks and the lack of diplomatic progress were expected to maintain elevated market volatility and a geopolitical risk premium.
Asian oil demand is also strengthening, with September crude imports projected at 23.96 million barrels per day, up from 23.38 million barrels per day in August and the highest level since the conflict began, according to Kpler data cited by CNBC.
Gains were partly limited by unexpected growth in US crude inventories. The Energy Information Administration reported a 3 million-barrel increase in commercial crude stocks for the week ended September 18, compared with analysts’ expectations for a 500,000-barrel decline.
The latest market moves followed President Donald Trump’s disclosure that US and Iranian representatives had held three hours of talks on the sidelines of the UN General Assembly. Trump described the meeting as positive but said he faced a major decision on whether to pursue an agreement with Tehran or take military action.
Bank of America has warned that Brent could rise above $150 a barrel if the conflict continues to drain global inventories, while JPMorgan Chase has said it no longer has a baseline oil-price outlook because of uncertainty surrounding the conflict.
Credit to our Media Partner DailyTrust .
