Marketers Explain Decision to Import Petrol from Abroad Despite Dangote Refinery, Seek More Licences
- Nigerian fuel marketers are applying for more petrol import licenses from the federal government
- The oil marketers believe that the importation will boost supply and help reduce retail prices due to competition
- Dangote Refinery has consistently stressed that it can meet the petroleum demands of Nigeria
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Oil marketers in Nigeria are pursuing additional petrol import licenses from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The move follows the Dangote Refinery's accusation of marketers importing substandard products.
Source: Getty Images
Dangote Group, in a statement released, said:
"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."
Marketers move to get more import licences
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, claiming that Dangote Refinery product price is high.
The report added that IPMAN and PETROAN are awaiting approvals from the Central Bank of Nigeria (CBN) and the NMDPRA to proceed.
The marketers believe 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.”
NMDPRA on petrol import licences
However, NMDPRA has refuted any suggestion that the two associations be granted a collective import licence, stating that only individual applications are permitted under the law.
An anonymous NMDPRA official was quoted as saying:
“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.”
Ghana proposes ECOWAS currency for Dangote petrol
Meanwhile, Legit.ng earlier reported that Ghana hinted that African countries would agree on a common currency to buy Dangote petrol to dampen demand for dollars.
The West African nation also expressed interest in buying petroleum products from the refinery once it operates at full capacity.
The head of the country's oil regulator said that patronising the Nigerian refinery would cut more expensive exports from Europe.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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Source: Legit.ng
