Nigeria’s downstream petroleum sector is facing fresh controversy as oil marketers have accused major fuel importers of selling petrol at around N1,350 per litre despite government efforts to encourage competition and lower prices. The Independent Petroleum Marketers Association of Nigeria (IPMAN) said importers, including AA Rano and Matrix, are offering imported fuel at prices significantly higher than those supplied by Dangote Petroleum Refinery, raising concerns about the effectiveness of recently issued import licences.
Speaking on the development, IPMAN National Publicity Secretary Chinedu Ukadike expressed disappointment that the licences granted to importers have not delivered the expected benefits. According to him, the policy was intended to serve as a market-balancing mechanism that would prevent excessive pricing and ensure consumers enjoy competitive fuel costs. Instead, he argued that imported products are entering the market at prices far above locally refined alternatives, leaving marketers and consumers questioning the strategy.
Ukadike also raised concerns about the quality of some imported petroleum products and warned that continued price volatility could create uncertainty across the sector. He urged the Federal Government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to review the current system transparently and ensure that policies introduced to stabilize the market are achieving their intended objectives. He maintained that independent marketers were surprised to see imported fuel priced considerably higher than products supplied by Dangote Refinery.
Beyond pricing concerns, IPMAN warned that increased fuel importation could place additional pressure on Nigeria’s foreign exchange market. With the naira facing ongoing challenges against the US dollar, Ukadike argued that reliance on expensive imports increases demand for foreign currency and weakens efforts to stabilize the local economy. He called on the Federal Government to strengthen support for domestic refining and continue crude oil sales to local refiners in naira, a move he believes could help keep fuel prices lower for Nigerians.
The concerns come as the Federal Government intensifies efforts to create a more competitive downstream petroleum market. Earlier this month, key stakeholders, including Dangote Refinery, regulatory agencies, marketers’ associations and industry operators, met to discuss fair pricing and competition in the sector. The meeting followed calls by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, for marketers to adjust pump prices in line with falling global crude oil prices. As debates over fuel pricing continue, industry observers say the outcome could have a significant impact on energy costs, inflation and consumer spending across the country.
source: nairametrics
