Nigeria’s Independent Petroleum Marketers Association (IPMAN) has raised the alarm over recent licences granted to some firms to import petroleum products, saying the move is worsening price volatility and putting added pressure on the Naira.
In a voice note to journalists in Abuja, IPMAN National Publicity Secretary Chinedu Ukadike said independent marketers closely reviewed recent downstream developments, including the import licensing regime, petrol pricing in dollars, and price swings, and concluded that issuing those import licences is not in Nigerians’ best interest.
Ukadike urged the Federal Government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to review the licences transparently. He argued the licences, intended to check prices when domestic refineries can’t meet demand, are failing to achieve that goal.
Pointing to cost dynamics, Ukadike said the current landing price for imported petrol is about N1,350 per litre - roughly 20 percent higher than Dangote Refinery’s price - making imports economically counterproductive. He linked the licences to recent pressure on the Nara, which has weakened to about N1,400 to the dollar and in turn pushed pump prices higher nationwide.
Ukadike stressed that one major benefit from local refining has been a continuous, uninterrupted supply of petrol - a situation Nigeria previously struggled to maintain when it relied heavily on imports. He asked whether it makes sense to approve import licences that could further inflate domestic prices instead of addressing pricing controls.
He called for stronger backing of domestic refining capacity, including support for government-owned refineries alongside Dangote, arguing this is essential for energy security. Prioritising local refining, he said, would help guarantee supply, stabilise prices, and create foreign-exchange opportunities through exports.
He therefore called on the Federal Government to look into the matter transparently through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), with a view to reviewing the move.
He said that the issuing of licences for the importation of petroleum products which is meant to serve as a check on the prices of domestically refined petroleum products, is not achieving the results expected by independent marketers.
He explained that landing price of petrol is N1,350 or about 20 per cent higher than the price being sold by Dangote Refinery, which he argued makes the importation of the product counterproductive.
He argued that importing petroleum products at a higher cost than locally available products does not make economic sense.
Ukadike linked the granting of licences for the importation of petroleum products to recent pressure on the Naira, which has led to the depreciation in the exchange rate of the currency to N1,400 to the dollar, which he said, in turn, was affecting the pump price of petroleum products across the country.
He noted that the one major gain Nigeria has recorded from local refining is a continuous, uninterrupted supply of petroleum products, something the country struggled with in the past when it depended heavily on imports.
“If we have a continuous, uninterrupted supply, our problem is pricing. Is it not better to sit down and see how this issue can be controlled than to sign unnecessary import licences that will further inflate the price of petroleum products in our country?” he asked.
Ukadike called for stronger support for local refining capacity, including government-owned refineries alongside Dangote Refinery, describing this as necessary for the country’s energy security. He said Nigeria should prioritise its own refining capacity rather than depend on imports.
He said that since the Dangote Refinery came on stream, scarcity of petroleum products, which was a perennial problem has become a thing of the past.
He therefore 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 for the country through exports.
0 comments:
Post a Comment