N800 PER LITRE! Marketers Explain Decision to Import Petrol from Abroad Despite Dangote Refinery, Seek More Licences

Nigerian Oil marketers are applying for more petrol import licenses from the Federal Government

The marketers believe that the importation will boost supply and help reduce retail prices due to competition. Dangote Reifney has consistently stressed that its refinery has the capacity to meet the petroleum demands of Nigeria

The move comes after the the Dangote Refinery accused marketers of importing substandard products. …CONTINUE READING

Oil marketers in Nigeria are pursuing additional petrol import licenses from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)

The association has signed deals with international suppliers to import petrol reasonably, and the product will arrive in Nigeria soon at N800 per litre.

The move comes after the the Dangote Refinery accused marketers of importing substandard products.

“If anyone claims they can land PMS at a price cheaper than what we are selling, then they are importing substandard products and conniving with international traders to dump low quality products into the country, without concern for the health of Nigerians or the longevity of their vehicles.

“Unfortunately, the regulator (NMDPRA) does not even have laboratory facilities which can be used to detect substandard products when imported into the country.”

Punch reports that members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) are serious about getting more licences and claim that Dangote Refinery product price is high.

The report added that IPMAN and PETROAN are awaiting the necessary approvals from the Central Bank of Nigeria (CBN) and the NMDPRA to proceed. The marketers are warned that importing cheaper petrol could relieve Nigerians battling high fuel prices at filling stations.

Joseph Obele, PETROAN’s National Public Relations Officer, also alleged that the Dangote Refinery is trying to dominate the market and block competitors.

He said: “Dangote is just out to close all the doors and windows so that no one else can enter the market” Obele asserted that PETROAN’s trading wing applied for an import licence a month ago and is determined to bring in high-quality fuel at competitive prices to reduce costs for Nigerians.

Obele urged Nigerians to support efforts to dismantle monopolistic structures, saying: “We are trapped with exploitation, and the only way out is to dismantle every dimension of monopoly. We are calling on Nigerians to support us in this cause.”

However, NMDPRA has refuted any suggestion that the two associations would be granted a collective import licence, stating that only individual applications are permitted under the law.

,“They can’t apply for a petrol import licence as an association. Individual marketers have to apply by themselves. We are not going to give the permit jointly.”