The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed concern over the growing number of licences issued for petrol imports, warning that the trend could lead to higher fuel prices, increase pressure on the naira and create more instability in the downstream petroleum sector.
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The association said the continued importation of petrol at higher costs than locally refined products could weaken efforts to maintain stable fuel prices across the country.
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IPMAN National Publicity Secretary, Chinedu Ukadike, made the remarks on Sunday while reacting to recent developments in the petroleum sector.
His comments followed fresh increases in petrol pump prices by some marketers after crude oil prices rose and depot prices were adjusted by Dangote Refinery and other suppliers.
Market checks carried out on Sunday showed that several filling stations had increased their retail prices following the latest changes in depot costs. AYM Sharfa, for example, raised the price of petrol from N1,191 per litre to N1,220 per litre over the weekend.
Ukadike said independent marketers had reviewed recent developments in the downstream sector, including the increase in import licences, changing fuel prices and the growing use of foreign exchange in petroleum transactions.
He called on the Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to take urgent steps to address the issues affecting fuel pricing and supply across the country.
According to him, the approval of additional import licences was expected to promote healthy competition in the market, but instead had created more uncertainty for marketers and consumers.
He stated that some companies granted import licences were offering imported petrol at about N1,350 per litre, which is higher than the price offered by Dangote Refinery to marketers.
Ukadike warned that selling imported fuel at such prices could create more pressure on consumers and make it difficult for independent marketers to plan their businesses.
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He explained that the landing cost of imported petrol is estimated to be about 20 per cent higher than the cost of products refined locally by Dangote Refinery.
He added that relying on imported fuel also increases demand for foreign exchange, placing more pressure on Nigeria’s reserves and contributing to the continued depreciation of the naira.
Ukadike noted that changes in the exchange rate have continued to affect petrol prices across the country, making fuel more expensive for consumers.
He urged the government to work closely with stakeholders in the downstream sector and address issues affecting local refining so that more petroleum products can be produced and sold in naira.
The IPMAN spokesman said one of the biggest gains from increased domestic refining has been the reduction in the fuel shortages that were common when Nigeria depended mainly on imported petroleum products.
He argued that instead of approving more import licences, attention should be directed towards finding lasting solutions to fuel pricing while maintaining a steady supply of products.
Ukadike also appealed to the government to provide stronger support for both public and private refineries, saying increased local production remains the best path to achieving energy security.
He said many Nigerians were already facing economic hardship and called for greater support for local investors and refinery operators to strengthen the country’s economy.
He added that with adequate refining capacity, Nigeria would be able to move from being a major importer of petroleum products to becoming an exporter of refined fuel, creating additional foreign exchange earnings for the country.
Ukadike recalled that when Nigeria relied heavily on imported fuel, long queues and fuel scarcity were common across the country. He maintained that expanding domestic refining remains essential to ensuring stable fuel supplies and reducing economic pressure on Nigerians.
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