LA SUITE APRÈS LA PUBLICITÉ

The Independent Petroleum Marketers Association of Nigeria – IPMAN has leveled accusations against major fuel importers, including AA Rano and Matrix, for setting imported petrol prices at approximately N1,350 per litre.

This rate is substantially higher than the price offered by the domestic Dangote Petroleum Refinery. IPMAN’s National Publicity Secretary, Chinedu Ukadike, expressed shock over the markup, noting that marketers have slowed down large-scale fuel loading while waiting for clearer pricing templates from both Dangote and the newly imported consignments.

According to Ukadike, the Federal Government’s strategy of issuing import licenses to moderate domestic fuel prices through competition has failed to yield the intended results. Instead of serving as a price check against local refining, imported products are entering the Nigerian market at inflated costs and under questionable quality standards.

Ukadike called on the Federal Government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority – NMDPRA to transparently intervene, warning that continuous price volatility will exacerbate uncertainty for independent marketers.

The association highlighted that relying on international PLATTS pricing and importing fuel via hubs like Lomé makes imported petrol roughly 20% more expensive than Dangote’s output.

Furthermore, this heavy reliance on fuel importation creates immense pressure on Nigeria’s foreign exchange market, driving the exchange rate close to N1,400 to the US dollar. IPMAN argued that indiscriminate issuance of import licenses only intensifies foreign currency demand, ultimately pushing retail pump prices higher for everyday consumers.

To stabilize the energy market and lower domestic fuel prices, IPMAN urged the Federal Government to prioritize local refining and re-engage Dangote Refinery on crude oil sales denominated in naira. Sustained domestic supply in local currency is seen as far more beneficial for the economy than spending scarce foreign reserves on overpriced imports. Marketers contend that strengthening domestic refining infrastructure is the most sustainable path to shielding the economy from external price shocks.

These developments follow a recent high-level stakeholders’ meeting convened by the Federal Government with representatives from Dangote Refinery, NMDPRA, FCCPC, PETROAN, and major marketer associations like MEMAN and DAPPMAN. The meeting was prompted by directives from the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, urging marketers to reduce pump prices in alignment with declining global crude prices.

The government’s ongoing engagement aims to address downstream pricing, curb anti-competitive practices, and ensure fair retail petrol prices nationwide.

However, IPMAN maintains that until the government addresses dollar-denominated trade and curbs expensive imports, achieving a truly competitive and consumer-friendly fuel market will remain an uphill battle.