Subsidy Removal: Emadeb alters NNPCL monopoly, imports 27m  litres of petrol

By Adewale Sanyaolu

The deregulation of the downstream sector appears to be yielding the desired result as Emadeb Energy has imported 27 milion litres of Premium Motor Spirit(PMS), popularly petrol into the domestic market at a cost of over $17 million.

Chief Executive Officer (CEO) of Emadeb Energy, Mr Debo Olujimi, disclosed this while taken delivery  of the PMS cargo at its Ijegun Satellite Depot in Lagos.

The move by Emadeb Energy signals the end of NNPCL monopoly which it has enjoyed for several years when it assumed the importer of last resort as a result of the inability of major oil marketers to continue petroleum products importation due to Foreign exchange crisis.

Emadeb is one of the oil marketers licensed by the Nigerian Midstream Downstream Petroleum Regulatory Authority(NMDPRA) and one of the very first to resume petrol imports after the removal of fuel susbsidy by President Bola Tinubu on May 29, 2023.

“Now that private companies had been granted licences to import petrol, this is actually the way forward. It is a known fact that the increase in price of petrol has been a huge pressure on Nigerians which we all understand.

The only way to address the ongoing challenge is for government to encourage local refining, Having local refineries is the only way forward because foreign exchange determines the price of petrol. As at yesterday, dollar was at N834.

Government should assist marketers to access dollar on a single CBN E&l window pending when local refineries will be able to work.

This will be sustainable, so that all marketing companies can pledge on how to import petrol into the country,” he added.

The Emadeb boss commended President Tinubu for deregulating the downstream sector, adding that the company looks forward to a sustainable development in oil and gas sector.

“NNPCL has been the sole supplier and we decided to import to cushion supply. We are a responsible company and we know what Nigerians are passing through. So, we will not inflate price or engage in profiteering of the product because we are God fearing people.

We urge government to help to find a window where forex is resolved to have a fixed market rate for importation of fuel,” he said.

The Authority Chief Executive, NMDPRA, Mr.Ahmed Farouk, commended Emadeb’s bold step toward importing petrol despite the fluctuation in foreign exchange rate.

 Farouk, who was represented by Mr Sadiq Bashir, Executive Director, Corporation Services and Administration of NMDPRA, said the company had made significant progress geared toward effective product distribution, adding  that deregulation was not all about pricing but opening up the market.

“We, at NMDPRA, will also ensure quality supply of petrol and quality in product. Prices change and market forces also determine the market. Petroleum product  price is denominated in Dollars and the product is bought in foreign exchange.

The price are benchmarked with the international price,” he said.

Secretary General of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Mr.Olawale Afolabi, said that deregulation had helped in opening the market.

Afolabi said that the significance was that Emadeb had taken the bull by the horn to bring in product against NNPCL, who used to be the sole importer.

He said the most important part was that deregulation should be based on local production.

He argued that petrol price increase inis affecting Nigerians because the variables at international oil market cannot be determined by the government.

He urged investors to come and invest in refining, so that Nigeria can have local refineries.

National Operations Controller of Independent Petroleum Marketers Association of Nigeria (IPMAN),  Mr.Mike Osatuyi, commended Emadeb for commencing importation under post subsidy removal regime.

“We laud the courage, in spite of all the prevelling challenges. The era of monopoly of product has done.

The process will be more transparent than that of the NNPCL, where money are paid and product are not allocated for five months. I urge government to quicken the palliative for Nigerians, to have a relief.

Government should use money saved from subsidy and forex to do something reasonable for Nigerians. Price will be competitive because the cheapest rate as at yesterday was N565,” he added.