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The Independent Petroleum Marketers Association of Nigeria (IPMAN) has accused major fuel importers of selling imported petrol at about N1,350 per litre, a development it says defeats the Federal Government’s objective of issuing import licences to encourage competition and moderate domestic fuel prices.
IPMAN’s National Publicity Secretary, Chinedu Ukadike, alleged that importers, including AA Rano and Matrix, were pricing imported petrol significantly above the rates offered by the Dangote Petroleum Refinery, raising concerns over the effectiveness of the government’s import licensing policy.
Speaking on the development, Ukadike said independent marketers had expected the import licences to serve as a check on domestic fuel pricing but argued that the policy had failed to deliver the desired outcome.
“The independent marketers of Nigeria have looked at the price volatility, the issue of the import license, the issue of sales of petroleum products and dollar, and holistically I will want to use the opportunity to urge the federal government to be able to look into this thing transparently through NMDPRA, who is the authority of the industry,” he said.
According to him, the recent import licences issued to marketers have not helped reduce fuel prices as anticipated.
“The recent import licenses, which are termed to be used as a guiding principle or a check to domestic petroleum products being refined here in Nigeria, is not yielding the results as was expected by the independent marketers,” he stated.
Ukadike expressed surprise that some importers were reportedly selling imported petrol at about N1,350 per litre, despite lower prices from the Dangote refinery.
“We were shocked, even as I am talking to you now, that the licenses that have been given to AA Rano, Matrix and all the rest of them to be able to import petroleum products are trying to peg the price of petroleum products at N1,350, which is far, far distant from what Dangote has been selling to us,” he said.
He further questioned the quality and pricing of imported products, insisting that the policy was undermining the purpose for which the licences were granted.
“The essence of NNPC or NMDPRA or the federal government opening up this import license is also to checkmate the domestic price of petroleum products, whereas where we find out that these products are being brought into this country, one, their qualities are questionable, two, their prices are higher,” Ukadike added.
The IPMAN spokesman also warned that continued fuel importation at higher prices was increasing pressure on Nigeria’s foreign exchange market, with the naira approaching N1,400 to the US dollar.
He argued that imported petroleum products priced using the international PLATTS benchmark were about 20 per cent more expensive than products supplied by Dangote Refinery, making imports less competitive.
Ukadike urged the Federal Government to sustain the sale of crude oil to the Dangote refinery in naira, saying the arrangement would help stabilise domestic fuel prices, reduce demand for foreign exchange and ease pressure on the local currency.
He also cautioned against what he described as the indiscriminate issuance of import licences, warning that such a policy could ultimately lead to higher pump prices for consumers instead of promoting competition.
Earlier this month, the Federal Government convened a stakeholders’ meeting involving the Dangote Petroleum Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), IPMAN, the Major Energy Marketers Association of Nigeria (MEMAN), Matrix Energy, TotalEnergies, Eterna and other operators to discuss fair petrol pricing across the country.
The meeting followed a directive by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, urging marketers to reduce pump prices in line with the recent decline in global crude oil prices as part of efforts to promote competition and ensure domestic fuel prices reflect prevailing market conditions.
