The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed concern over the growing number of petroleum product import licences, warning that increased reliance on imported petrol could worsen market instability, put further pressure on the naira and trigger higher pump prices.
IPMAN’s National Publicity Secretary, Chinedu Ukadike, said on Sunday that the association was worried that imported petrol was entering the market at prices higher than locally refined products, a situation he said could undermine efforts to stabilise Nigeria’s downstream petroleum sector.
His remarks followed recent increases in petrol pump prices by some marketers, triggered by rising crude oil prices and adjustments in depot prices by Dangote Refinery and other suppliers.
Findings showed that some retail outlets had increased their prices after depot costs went up. AYM Sharfa, for instance, adjusted its petrol price from N1,191 per litre to N1,220 per litre over the weekend.
Ukadike said independent marketers had reviewed developments in the downstream sector, including the approval of import licences, fluctuations in petroleum prices and the growing demand for foreign exchange to finance fuel imports.
He called on the Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to urgently intervene in issues affecting supply and price stability.
According to him, the approval of new import licences, which was intended to encourage competition and regulate domestic refinery pricing, had instead created additional uncertainty in the market.
Ukadike claimed that some companies with import licences were selling petrol at about N1,350 per litre, describing the price as higher than the rate at which Dangote Refinery supplies marketers.
“What is the essence of issuing this price? This will create a lot of tension in society,” he said, warning that continued price volatility was making it difficult for independent marketers to plan their businesses.
He noted that imported petrol carries a landing cost estimated to be about 20 per cent higher than locally refined products from Dangote Refinery, adding that dependence on expensive imports was placing more strain on Nigeria’s foreign exchange reserves.
Ukadike also linked the pressure on foreign exchange to the depreciation of the naira, saying exchange rate fluctuations were contributing to rising petrol prices across the country.
He urged the government to engage key stakeholders in the downstream sector and address challenges affecting domestic refining capacity to promote the production and sale of petroleum products in naira.
The IPMAN spokesman said the biggest advantage of increased local refining capacity was the end of prolonged fuel scarcity caused by Nigeria’s previous dependence on imported products.
“If we are having continuous and uninterrupted supply, our problem is pricing. Is it not better we sit down and see how this issue can be controlled, than signing unnecessary import licences that will further inflate the price of petroleum products in our country?” he asked.
He urged the government to provide stronger support for both public and private refineries, stressing that Nigeria must prioritise domestic production to achieve energy security.
“Nigerians are suffering. This is a time to call for national unity, a time to call for support for our industrialists and our refiners,” he said.
Ukadike added that with adequate refining capacity, Nigeria could move from being a major importer of petroleum products to an exporter of refined products, thereby generating additional foreign exchange.
He recalled that the country’s heavy reliance on fuel imports in the past often resulted in prolonged shortages, stressing that expanding domestic refining capacity remains essential to reducing economic pressure and ensuring a stable supply of petroleum products.
