The Independent Petroleum Marketers Association of Nigeria (IPMAN) has sounded the alarm over the growing number of petrol import licences being issued in the country, warning that the trend could lead to higher fuel prices and renewed pressure on the Nigerian economy. The association believes that increased imports are creating uncertainty in the downstream petroleum sector at a time when Nigeria is striving to strengthen local refining and stabilize fuel supply.
Speaking on the development, IPMAN’s National Publicity Secretary, Chinedu Ukadike, expressed concern that imported petrol is being sold at significantly higher prices than locally refined products. According to him, some importers are offering petrol at around N1,350 per litre, a rate that exceeds the prices supplied by domestic refiners such as Dangote Refinery. He argued that rather than promoting healthy competition, the import licence regime is contributing to market instability and making business planning more difficult for independent marketers.
The warning comes as motorists across the country face fresh increases in petrol pump prices. Several retail outlets have adjusted their prices upward following recent hikes in depot costs linked to rising crude oil prices and supplier adjustments. Industry observers say these developments are already placing additional financial pressure on consumers, many of whom are struggling with the rising cost of living.
Ukadike further noted that imported petrol carries a landing cost estimated to be about 20 percent higher than locally refined products. He explained that the continued reliance on imports increases demand for foreign exchange, putting pressure on Nigeria’s reserves and contributing to the depreciation of the naira. As the local currency weakens, the cost of importing fuel rises, creating a cycle that ultimately results in higher prices at filling stations nationwide.
IPMAN is now calling on the Federal Government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to engage industry stakeholders and prioritize domestic refining. The association maintains that supporting public and private refineries will not only ensure uninterrupted fuel supply but also strengthen Nigeria’s energy security, reduce economic pressure on citizens, and position the country to become a major exporter of refined petroleum products. For many Nigerians already grappling with economic challenges, IPMAN insists that boosting local production remains the most sustainable path toward stable and affordable fuel prices.
source: vanguard
