Petrol imports rise in July as domestic refinery supply drops

Nigeria's dependence on imported petrol showed signs of increasing in July, as supplies from domestic refineries experienced a significant drop. This occurred even as the country works to expand its refining capacity, highlighting the persistent challenges in shifting away from imported petroleum products.

Latest statistics from Nigeria's midstream and downstream petroleum operations revealed that domestic petrol supply fell by 21 percent within one month. Concurrently, petrol imports rose by 9 percent. The total daily receipts of Premium Motor Spirit, commonly known as petrol, declined by 10 percent from 50.6 million liters per day in June to 45.5 million liters per day in July.

The composition of this supply shifted notably. Domestic refineries, which supplied 32.5 million liters daily in June, reduced their output to 25.8 million liters per day in July. In contrast, imported petrol receipts climbed from 18.1 million liters daily to 19.7 million liters daily. This indicates that while locally refined petrol remained the primary source, imports captured an increasing market share in July as local production weakened.

This reversal follows a trend that began in June, when petrol imports had surged by 207 percent as domestic supply dropped by 22 percent. The July figures show a continuation of this pattern, with domestic supply falling further and imports gaining ground. The report also noted a decline in crude oil receipts by domestic refineries, from 632,000 barrels per day in June to 585,000 barrels per day in July, an eight percent reduction. This lower crude supply appears linked to the decrease in domestic petrol receipts, underscoring the connection between feedstock availability and Nigeria's goal of reducing reliance on imported fuel.