The Independent Petroleum Marketers
By Mu’azu Hassan
Association of Nigeria (IPMAN) has urged the Federal Government to halt the issuance of new licences for the importation of petroleum products, arguing that the policy is fuelling price instability, weakening the naira, and undermining the country's local refining capacity.
Speaking in a voice note made available to journalists in Abuja on Sunday, IPMAN National Publicity Secretary, Chinedu Ukadike, said the association had reviewed recent developments in the downstream petroleum sector, including price volatility, the import licensing regime, and the sale of petroleum products in foreign currency.
According to him, the recent approval of import licences for some companies is not in the best interest of Nigerians and should be reviewed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Ukadike argued that the import licensing policy, which was intended to check the prices of locally refined petroleum products, has failed to achieve its objective. He noted that the current landing cost of imported petrol stands at about N1,350 per litre, approximately 20 per cent higher than the price offered by Dangote Refinery.
He said importing petroleum products at a higher cost than locally refined products was economically unjustifiable and only contributed to higher fuel prices for consumers.
The IPMAN spokesman further linked the continued issuance of import licences to increased demand for foreign exchange, saying the practice had placed additional pressure on the naira, leading to its depreciation and further driving up the pump price of petroleum products.
He maintained that one of the major achievements of local refining has been the steady and uninterrupted supply of petroleum products, ending the recurring fuel scarcity that characterised the country's dependence on imports.
"If we have a continuous, uninterrupted supply, our problem is pricing. Is it not better to sit down and see how this issue can be controlled than to sign unnecessary import licences that will further inflate the price of petroleum products in our country?" Ukadike said.
He called on the Federal Government to strengthen support for domestic refining by encouraging both the Dangote Refinery and government-owned refineries, stressing that boosting local refining capacity is essential for Nigeria's energy security.
Ukadike added that since the commencement of operations at the Dangote Refinery, the persistent fuel shortages that once plagued the country had largely disappeared.
He urged the Federal Government to prioritise local refining over imports, saying the move would guarantee energy security, ensure adequate domestic supply of petroleum products, reduce pressure on foreign exchange, and boost the country's earnings through petroleum exports.
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