.hails Dangote Refinery for uninterrupted fuel supply in Nigeria
By Our Reporter
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged the Federal Government to urgently review and, where necessary, withdraw the recently approved fuel import licences issued to some petroleum products marketers in the country.
IPMAN, while making the call, argued that the approvals were contributing to rising fuel prices, foreign exchange pressure and instability in Nigeria’s downstream petroleum sector.
This was just as the association insisted that the current fuel import regime had failed to achieve its intended objective of moderating domestic petroleum products prices, but had instead encouraged higher pump prices, increased dependence on foreign exchange and created unnecessary competition against locally refined petroleum products.
IPMAN spokesperson, Chinedu Ukadike, made the position known during an interview in Abuja, urging the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited (NNPC Ltd.) and the Federal Government to reassess the policy in the interest of consumers and the nation’s economy.
Ukadike expressed the concern of independent marketers that some licensed importers were proposing to sell Premium Motor Spirit (PMS) at about ₦1,350 per litre, describing such as significantly higher than the ex-depot price being offered by the Dangote Petroleum Refinery.
IPMAN spokesperson argued that such pricing defeats the purpose of granting import licences as a measure to promote competition and stabilise the market.
He questioned the rationale behind importing petroleum products that were more expensive than those refined locally, stressing that the development had exposed Nigerians to unnecessary fuel price volatility.
Ukadike added that based on the development, marketers were finding it increasingly difficult to plan their operations because of the uncertainty created by fluctuating import costs, just as he also expressed concern over the quality of some imported petroleum products, alleging that certain fuel imports were questionable and may not meet expected standards.
IPMAN National Publicity Secretary urged regulators to strengthen quality assurance measures and ensure that only products that comply with Nigeria’s specifications were allowed into the country.
Beyond pricing concerns, IPMAN argued that continued fuel importation places additional pressure on Nigeria’s foreign exchange market, noting that paying for imported fuel in foreign currency increases demand for the US dollar, weakens the naira and ultimately raises the overall cost of petroleum products across the country.
Ukadike further stated that the current policy undermined the country’s efforts to achieve energy security through domestic refining, insisting that greater reliance on locally refined petroleum products would reduce foreign exchange demand, stabilise fuel supply and support the growth of Nigeria’s refining industry.
IPMAN spokesperson lauded the Dangote Petroleum Refinery for ensuring uninterrupted fuel availability despite global geopolitical tensions, including concerns over conflicts involving Iran and disruptions around the Strait of Hormuz.
According to him, local refining has helped Nigeria avoid the severe fuel supply shortages that often accompany disruptions in international supply chains.
This was as he maintained that since the commencement of operations at the Dangote refinery, Nigeria had experienced greater stability in petroleum product supply, with fewer cases of prolonged fuel scarcity that previously affected businesses and households across the country.
The association, therefore, urged the Federal Government to prioritise policies that encourage domestic refining rather than expanding fuel import approvals, arguing that supporting local refineries would strengthen Nigeria’s industrial capacity, create jobs and improve the country’s economic resilience.
It also called on the Presidential Committee overseeing reforms in the downstream petroleum sector to engage with stakeholders, including Dangote Refinery, to identify practical measures for sustaining affordable fuel prices while ensuring adequate supply for local consumption.
According to IPMAN, Nigeria stands to benefit more if locally refined petroleum products are supplied sufficiently to meet domestic demand while surplus production is exported to earn valuable foreign exchange noting that such a strategy would improve the country’s balance of payments and strengthen the naira over time.
It emphasised that ensuring a stable domestic refining industry would not only protect consumers from volatile international oil market conditions but also enhance Nigeria’s long-term energy security, warning that continued dependence on imported fuel could expose the country to recurring supply disruptions and higher landing costs.
The marketers concluded by appealing to the Federal Government to urgently review the fuel import licence approvals and adopt policies that promote local refining, stabilise petroleum products prices and protect Nigerians from the burden of rising fuel costs, noting that strengthening domestic refining remained the most sustainable path towards affordable fuel, economic stability and national energy security.
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