The Independent Petroleum Marketers Association( IPMAN) of Nigeria has urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority to review recently issued petrol import licences, arguing that imported fuel is now significantly more expensive than locally refined products.
The association’s position follows a report by the Major Energy Marketers Association of Nigeria indicating a sharp rise in the landing cost of imported Premium Motor Spirit.
According to MEMAN, the landing cost of petrol rose 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.
It said the naira averaged N1,380.51 to the dollar during the review period, while Brent crude traded at an average of $81.08 per barrel.
Reacting, IPMAN National Publicity Secretary, Chinedu Ukadike, said independent marketers were concerned that some importers were selling petrol at about N1,350 per litre, far above the price offered by the Dangote Refinery.
He questioned the rationale behind issuing import licences when imported petrol costs significantly more than fuel refined locally.
Ukadike argued that imported petrol is currently about 20 per cent more expensive than products supplied by the Dangote Refinery, describing the arrangement as uneconomical and a further strain on the country’s foreign exchange reserves and the naira.
He called on the Federal Government and relevant regulators to prioritise local refining by supporting the Dangote Refinery and government-owned refineries to guarantee energy security, stable fuel supply and more affordable pump prices.
According to him, increased domestic refining has helped eliminate the persistent fuel shortages experienced when Nigeria depended largely on imported petroleum products.
IPMAN also urged the government to address pricing challenges in the downstream petroleum sector and place greater emphasis on domestic refining over fuel imports, maintaining that stronger local refining capacity would position Nigeria to export petroleum products and earn additional foreign exchange.