The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Federal Government to review and, where necessary, withdraw recently approved fuel import licences, arguing that the policy is driving up petrol prices, increasing pressure on the foreign exchange market and undermining Nigeria’s downstream petroleum sector.
Speaking in an interview in Abuja, IPMAN National Publicity Secretary, Chinedu Ukadike, urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited (NNPC Ltd.) and the Federal Government to reassess the import licence regime in the interest of consumers and the economy.
Ukadike said the current import policy had failed to achieve its objective of moderating domestic fuel prices. Instead, he argued, it had encouraged higher pump prices, increased dependence on foreign exchange and created unnecessary competition for locally refined petroleum products.
According to him, some licensed importers are proposing to sell Premium Motor Spirit (PMS), popularly known as petrol, at about ₦1,350 per litre, a price he said is significantly higher than the ex-depot price offered by the Dangote Petroleum Refinery.
He questioned the rationale for importing petroleum products that are more expensive than those refined locally, noting that the development had exposed Nigerians to avoidable fuel price volatility and made it difficult for marketers to plan their operations because of fluctuating import costs.
The IPMAN spokesperson also expressed concern over the quality of some imported petroleum products, alleging that certain imports may not meet the required standards. He urged regulatory agencies to strengthen quality assurance measures and ensure that only products that comply with Nigeria’s specifications are allowed into the country.
Ukadike further argued that continued fuel importation places additional pressure on Nigeria’s foreign exchange market because imported products are paid for in foreign currency, thereby increasing demand for the US dollar, weakening the naira and raising the overall cost of petroleum products.
He maintained that greater reliance on locally refined fuel would reduce foreign exchange demand, stabilise supply and support the growth of Nigeria’s refining industry, thereby enhancing the country’s energy security.
IPMAN also commended the Dangote Petroleum Refinery for maintaining uninterrupted fuel supply despite global geopolitical tensions, including concerns over conflicts involving Iran and disruptions around the Strait of Hormuz.
According to the association, local refining has helped Nigeria avoid the severe fuel shortages that often result from disruptions in international supply chains, adding that fuel availability has become more stable since the refinery commenced operations.
The marketers urged the Federal Government to prioritise policies that encourage domestic refining instead of expanding fuel import approvals, arguing that supporting local refineries would strengthen industrial capacity, create jobs and improve economic resilience.
The association also called on the Presidential Committee overseeing downstream petroleum sector reforms to engage stakeholders, including the Dangote Petroleum Refinery, to develop practical measures for sustaining affordable fuel prices while ensuring adequate supply for domestic consumption.
IPMAN further stated that Nigeria would derive greater economic benefits if locally refined petroleum products were supplied sufficiently to meet domestic demand, with surplus production exported to earn foreign exchange, improve the country’s balance of payments and strengthen the naira.
The association warned that continued dependence on imported fuel could expose Nigeria to recurring supply disruptions and higher landing costs, insisting that a strong domestic refining industry remains the most sustainable path to affordable fuel, economic stability and long-term energy security.
IPMAN appealed to the Federal Government to urgently review the fuel import licence approvals and adopt policies that promote local refining, stabilise petroleum product prices and shield Nigerians from the burden of rising fuel costs.
Comment here