Russian-Ukraine war may affect fuel import into Nigeria

The ongoing war between Russia and Ukraine may further prolong the over three-week scarcity of Premium Motor Spirit, popularly called petrol, in Nigeria, as bulk of the refined products coming into the country from the warring region and its adjoining areas are likely to face some delays.

Information available to Western Post shows that traders who supply Nigeria with refined petroleum products might pause a little due to the deficit in the supply of crude oil cargoes from the Nigerian National Petroleum Company Limited.

NNPC brings in refined petrol into Nigeria using contractors or traders through its Direct Sale Direct Purchase scheme.

Under the scheme, the oil company provides crude oil to its trading partners, who in turn supply the NNPC with refined products worth the volume of crude received.

But impeccable sources both at the oil firm and among traders stated on Sunday that Nigeria through the NNPC had a deficit of about 17 cargoes in its DSDP obligation due to low oil production.

This, they said, could further prolong the fuel scarcity situation being faced nationwide, except something drastic such as the complete deregulation of the downstream oil sector was implemented.

It was also noted that the Russia-Ukraine war might worsen the petrol supply situation in Nigeria as products could be hindered from leaving refineries in the region on schedule.

Nigeria imports its refined petroleum products, as its refineries are currently dormant.

“What we face now could be described as a perfect storm, which is when many things go wrong at the same time. We have a problem, but that problem happens at a time that other things happened and so it aggravates everything,” an oil trader with the NNPC said

The source noted that the Russian-Ukraine war would affect import of oil into Nigeria because Russia is an oil producing State, and Nigeria’s refined crude oil comes from that part of the world, not only Western Europe.

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