ABUJA, Nigeria (VOICE OF NAIJA)-The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to review recently issued petrol import licences, arguing that imported fuel has become significantly more expensive than locally refined products.
The association’s appeal follows a report by the Major Energy Marketers Association of Nigeria (MEMAN), which disclosed a sharp rise in the landing cost of imported petrol.
According to MEMAN, the landing cost of petrol increased to N1,190.96 per litre as of July 16, while the seven-day and 30-day average costs stood at N1,155.45 and N1,070.66 per litre, respectively.
The association attributed the increase to the depreciation of the naira and rising global crude oil prices.
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It explained that the naira averaged N1,380.51 per dollar during the review period, while Brent crude traded at an average of $81.08 per barrel.
Reacting to the development, IPMAN National Publicity Secretary, Chinedu Ukadike, said independent marketers were worried that some importers were selling petrol at about N1,350 per litre, far above the price offered by Dangote Refinery.
He questioned the rationale behind issuing import licences when imported petrol is more expensive than fuel produced locally.
Ukadike maintained that imported petrol currently costs about 20 per cent more than products supplied by Dangote Refinery, describing the situation as uneconomical and an added burden on the country’s foreign exchange reserves and the value of the naira.
He urged the Federal Government and relevant regulators to support local refining, particularly Dangote Refinery and government-owned refineries, to strengthen energy security, guarantee stable fuel supply and reduce pump prices.
According to him, increased local refining has helped eliminate the persistent fuel shortages that characterised the period when Nigeria relied heavily on imported petroleum products.
IPMAN also called on the government to tackle pricing challenges in the downstream petroleum sector and prioritise domestic refining over imports, stressing that expanding local refining capacity could position Nigeria to export petroleum products and earn additional foreign exchange.