The Independent Petroleum Marketers Association of Nigeria has rejected the recent approval of additional import licences for petroleum products, warning that the move is worsening price volatility and pressuring the naira.
In a statement, IPMAN's National Publicity Secretary, Chinedu Ukadike, said some companies granted import licences were pricing petrol at around ₦1,350 per litre, above what Dangote Refinery charges marketers. Questioning the rationale behind the licences, Ukadike asked, "What is the essence of issuing this price?" and called on the federal government to review the licensing regime through the Nigerian Midstream and Downstream Petroleum Regulatory Authority. He argued that importing fuel at a higher cost than locally refined product defeats the purpose of using imports to check domestic prices.
Ukadike linked the rise in imports to pressure on the naira, which he said had depreciated to about ₦1,400 to the dollar. He called for stronger government support for domestic refining capacity, including the NNPCL refineries alongside Dangote, and said Nigeria could eventually export finished petroleum products once local supply covers domestic demand.
IPMAN's objection follows a factsheet by the NMDPRA showing petrol imports rose by 207 per cent in June, to 543 million litres from 182.9 million litres in May, months after the regulator had reportedly said it stopped issuing PMS import licences in January, according to Daily Trust. Over the same period, Dangote Refinery's supply to the market fell by 22 per cent, from 1.28 billion litres to 975 million litres, even as the refinery kept producing at 39.1 million litres a day. All three NNPCL-owned refineries remained shut throughout the period.