The Nigerian Naira experienced mixed movements in the foreign exchange markets on Monday, as it depreciated to N1,665 per dollar in the parallel market, down from N1,660 per dollar recorded over the weekend.

In contrast, the official exchange rate saw the Naira appreciate to N1,534.56 per dollar, improving slightly from N1,535 per dollar last Friday, according to data released by the Central Bank of Nigeria (CBN).

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This reflects a marginal gain of 44 kobo in the official Nigerian Foreign Exchange Market (NFEM).

As a result, the gap between the parallel market rate and the NFEM rate widened to N130.44 per dollar, compared to the N125 per dollar margin recorded over the weekend.

In the absence of last-minute change in plans, marketers and retailers of petroleum products will start lifting Premium Motor Spirit (PMS) also known as petrol from the Port Harcourt Refining Company (PHRC) this week.

The Publicity Secretary of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Joseph Obele, made the disclosure, according The Punch.

It was gathered that since the refinery commenced operations in November, it had limited its supplies to retail outlets belonging to the Nigerian National Petroleum Company Limited (NNPC Ltd).

Though marketers still load fuel from the NNPC Ltd, Obele clarified that the products marketers currently buy from the state-owned oil company were imported.

He expressed concerns that the NNPC Ltd was selling PMS to retailers in Port Harcourt at prices higher than that of Lagos State, pleading that the refinery should sell at N899 per litre instead of N970.

“NNPC is still telling us to buy at a rate different from the rate they are selling to Lagos at the moment because of logistics. So, Port Harcourt retail outlet owners are not really comfortable with that. Hence, the Port Harcourt refinery will start servicing us this week.

“We are also requesting that the same rate NNPC is selling to our members at Lagos should be the rate they will be selling to us over here in Port Harcourt too. We are not really comfortable with that disparity,” he disclosed.

On whether or not marketers in Port Harcourt and environs have started buying directly from the NNPC Ltd’s managed refinery, he replied, “No, but it will commence this week. The trucks loading out are for the NNPC retail outlets only.”

On his request to the NNPC Ltd, Obele stated, “We in Port Harcourt, we plead with the NNPC to sell to us at the same rate they are selling fuel to Lagos marketers. The difference is too much. It is N899 per litre in Lagos but N970 in Port Harcourt. It is far higher than that of Lagos.

“The way they explain it, it is like their own vessel will be bringing it and shipping it over to Port Harcourt depot for us to buy. So, we are now saying that since you will be selling directly to us from the refinery, you now have the stock available. Sell to us at the same rate you are selling to Lagos marketers.

“So, that’s where we are right now. Our request is that the NNPC should sell to us from the Port Harcourt refinery at the same rate they are selling the product to those in Lagos.”

Asked if he meant the NNPC Ltd was still importing fuel to Lagos, the PETROAN spokesman replied in the affirmative, saying “The stocks in Lagos are imported stocks.”

Recall that after several postponements, the NNPC Ltd announced in November that the old 60,000 barrels per day Port Harcourt refinery had resumed operations.

The state oil major promised that rehabilitation works at the new Port Harcourt refinery with 150,000 barrels per day capacity would soon be completed.

Motivated by the relief provided by President Bola Ahmed Tinubu’s crude-for-naira swap initiative, two prominent players in Nigeria’s downstream oil and gas sector — Ardova Plc and Heyden Petroleum — have gone into a bulk purchase agreement with the Dangote Petroleum Refinery.

Biztellers reports that this strategic move is designed to ensure a steady supply of petroleum products at affordable prices, with a view to further stabilising Nigeria’s fuel market and enhancing energy security.

This strategy seeks to build on the example set by MRS Oil Nigeria Plc, which had entered into a similar agreement with Dangote Refinery.

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As a result, MRS Oil had lowered its petrol prices to N935 per litre across all its stations nationwide, addressing the long-standing issue of price disparities between states. On the sideline, MRS Oil’s stock surged to a new 52-week high last Friday, as investors became increasingly optimistic about the company’s future earnings prospects.

It was gathered that the bulk purchase agreement with Dangote Petroleum Refinery would enable both Ardova and Heyden to secure a reliable and consistent supply of petroleum products from the world’s largest single-train refinery, ensuring a stable supply of fuel at competitive prices, benefiting consumers across the country.

The arrangement ensures that Ardova and Heyden will have access to a full range of refined products, thereby securing their operations with a reliable supply chain.

A statement from Ardova Plc underscored the importance of this agreement in fostering a more competitive environment within Nigeria’s downstream oil and gas sector.

Ardova has been a key off-taker from the Dangote Refinery since its inception, but this new framework is expected to formalise and strengthen the partnership between the two companies, creating long-term benefits for both parties.

“This framework will see Ardova Plc offtake a full slate of petroleum products from the refinery. While Ardova Plc has been a significant off-taker from the refinery since its inception, this new framework will institutionalise a more robust relationship between the two companies to further enhance the emerging competitive landscape in the downstream oil and gas industry in the country,” noted the statement.

The partnership with Dangote Refinery is poised to have a transformative impact on Nigeria’s oil and gas market. By ensuring a stable and affordable supply of fuel products in the over 1,000 retail outlets of the two companies, the agreement will help to alleviate the recurring issue of fuel scarcity that has long plagued Nigeria.

The Dangote Refinery, which began production in 2024, has already played a pivotal role in addressing these challenges. Its large-scale operations have helped alleviate the supply pressures that often lead to price hikes and fuel shortages.

During the festive season, Nigerians enjoyed a relatively smooth period, with stable fuel availability and no significant price increases at the pump. Unlike previous years, when the country faced fuel shortages and arbitrary price hikes during peak periods, the Dangote Refinery has significantly contributed to stabilising the market and maintaining price consistency.