Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
The Independent Petroleum Marketers Association of Nigeria has firmly rejected the recent approval of additional import licences for petroleum products, warning that the development will worsen price volatility, weaken the naira, and push petrol prices higher across the country. The association's National Publicity Secretary, Chinedu Ukadike, expressed deep concern over the new import regime, arguing that imported petrol is entering the market at prices significantly above locally refined products, thereby undermining efforts to stabilise the downstream sector and placing unnecessary strain on Nigeria's foreign exchange reserves .
Ukadike disclosed that some companies granted import licences are selling petrol at about N1,350 per litre, a price he described as far higher than what the Dangote Refinery supplies to marketers . He argued that the landing cost of imported petrol is estimated to be about 20 per cent higher than locally refined products from Dangote Refinery . "What is the essence of issuing this price? This will create a lot of tension in society," Ukadike said, warning that continued volatility was making business planning difficult for independent marketers .
The IPMAN spokesman linked the pressure on foreign exchange to the recent depreciation of the naira, which he said had risen to about N1,400 to the dollar, affecting pump prices nationwide . He stressed that the import licences, which were meant to serve as a competitive check on domestic refinery prices, had instead introduced more uncertainty into the market . "If the goal of the NMDPRA and the federal government is to checkmate the domestic price of products, then the purpose has been defeated," he said .
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Agency shows that petrol importation surged by 207 per cent in June, rising to 543 million litres from 182.9 million litres in May, even as domestic supply from Dangote Refinery dropped by 22 per cent . This increase came despite the NMDPRA's claim that it had stopped issuing licences for PMS importation in January . The figures indicate that Nigeria has moved from importing 3 million litres per day of PMS to 18.1 million litres per day in June .
Ukadike questioned the rationale behind the new import regime, arguing that importing fuel at a higher cost than what is locally available does not make economic sense . He called on the Federal Government to transparently reassess the licence regime through the NMDPRA and convene the presidential committee on the downstream sector to address the challenges facing local refineries . "If we are having continuous and uninterrupted supply, our problem is pricing. Is it not better we sit down and see how this issue can be controlled, than signing unnecessary import licences that will further inflate the price of petroleum products in our country?" he asked .
The IPMAN spokesman recalled that during periods of heavy dependence on imports, the country experienced prolonged fuel shortages, stressing that expanding domestic refining remained critical to reducing economic pressure and ensuring a stable supply of petroleum products . He urged the government to strengthen support for both public and private refineries, saying Nigeria must prioritise domestic production to achieve energy security . "Nigerians are suffering. This is a time to call for national unity, a time to call for support for our industrialists and our refiners," he said .
Ukadike added that with sufficient refining capacity, Nigeria could transition from importing petroleum products to exporting refined products and generating additional foreign exchange . He urged the Federal Government to look inward and support the domestic refining of petroleum products to guarantee energy security, ensure sufficient local supply, and generate additional foreign exchange earnings for the country .
The development comes amid fresh increases in petrol pump prices by some marketers following a rise in crude oil prices and adjustments in depot prices by Dangote Refinery and other suppliers . Checks by Vanguard showed that some retail outlets had adjusted their prices upward after an increase in depot costs, with AYM Sharfa raising its price from N1,191 to N1,220 per litre at the weekend .
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