By Suleiman Anyalewechi
The Independent Petroleum Marketers Association of Nigeria, IPMAN, has called on the authorities to urgently review the import licence regime within the industry. It noted that the astronomical prices of imported petroleum products appears to be driving volatility in the system.
The IPMAN’s national spokesperson, Chinedu Ukadike, urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA to reassess the policy of importing fuel as, according to him, prices of imported petroleum products are far higher than local supplies.
He expressed shock and surprise that the system has strangely allowed imported fuel to be sold at about N 1,350 per litre, a price far above local supplies from the Dangote Refinery.
He emphasized that such price disparity between imported fuel and local supplies has been at the root of price volatility and general uncertainties within the industry.
He expressed serious concern that the development has resulted in continued pump price inflation with its attendant strain on the already weak Nigerian currency, as well as the country’s foreign reserve.
While insisting that NMDPRA reviews its policy on issuance of import licences, the IPMAN called for the prioritisation of local supplies over imported products.
Specifically, the IPMAN spokesman called for more official support for Dangote Refinery and other local refining outlets as well as activating regulatory measures to control the influx of what he described as “questionable quality of imported products, which are also more expensive.”
Such interventions he noted, will ensure stability in the industry and prevent the erosion of the modest gains so far made in the domestic supply chains.
According to him, the IPMAN, as a body, has closely-monitored the system, and has come to the unfortunate conclusion that a loose import licence regime has been the major driver of the volatility being experienced in the industry of late.
Ukadike particularly wants the Federal Government, through the NMDPRA, to reassess the situation with regard to price volatility, the import licence regime, and the sale of petroleum products in dollars with a view to enforcing sanity.
He emphasized that the noble idea of granting import licences for the purpose of bringing in fuel from outside the country to complement local supplies, thereby stabilizing prices, has been completely defeated.
The IPMAN spokesperson expressed serious concern that some companies involved in the importation of fuel are being allowed to peg their fuel at N1,350 ,per litre far higher than what locally refined supplies are being sold , including Dangote Refinery.
According to him, if the essence of issuing the import licences is to checkmate and stabilize domestic prices of petroleum products, there is no need to continue to allow into the country products of questionable quality and higher prices.
Further speaking, Ukadike alleged that the landing cost of imported petroleum products are about 20 percent higher than supplies from Dangote Refinery, a development which he insisted makes the fuel importation policy counterproductive and exploitative.
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