IPMAN urges FG to review, scrap fuel import licences over rising petrol prices, commends Dangote Refinery

Michael Olumide Alabi

Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Federal Government to urgently review and, where necessary, withdraw recently approved fuel import licences, warning that the policy is fueling higher petrol prices, mounting pressure on the foreign exchange market and undermining Nigeria’s drive towards energy security.

The association argued that the continued approval of fuel import licences has failed to achieve its primary objective of moderating domestic petroleum product prices. Instead, it said the policy has encouraged higher pump prices, increased reliance on foreign exchange and created unfair competition for locally refined petroleum products.

Speaking in Abuja, IPMAN’s National Publicity Secretary, Chinedu Ukadike, urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited (NNPC Ltd.) and the Federal Government to urgently reassess the current fuel import policy in the interest of consumers and the nation’s economy.

Ukadike expressed concern that some licensed fuel importers are proposing to sell Premium Motor Spirit (PMS), popularly known as petrol, at about ₦1,350 per litre, a price he described as significantly higher than the ex-depot price currently offered by the Dangote Petroleum Refinery.

According to him, allowing the importation of more expensive fuel defeats the purpose of granting import licences to encourage competition and market stability.

He questioned the economic wisdom of importing petroleum products at higher costs when local refineries already have the capacity to supply the domestic market more competitively.

“The purpose of granting import licences was to ensure competition and stabilise prices. However, importing fuel that is more expensive than locally refined products only exposes Nigerians to unnecessary price increases and market uncertainty,” he said.

Ukadike added that fluctuating international prices and foreign exchange rates have made it increasingly difficult for independent marketers to plan their operations, resulting in uncertainty across the downstream petroleum sector.

The association also raised concerns over the quality of some imported petroleum products, alleging that certain imported fuels may not meet expected regulatory standards.

It therefore urged regulatory agencies to strengthen quality assurance mechanisms and ensure that only petroleum products that comply with Nigeria’s approved specifications are allowed into the country.

Beyond pricing and quality issues, IPMAN warned that continued dependence on imported fuel places additional pressure on Nigeria’s foreign exchange reserves.

The association noted that payments for imported petroleum products are made in foreign currencies, particularly the United States dollar, thereby increasing demand for foreign exchange, weakening the naira and ultimately contributing to higher fuel prices for consumers.

Ukadike maintained that greater reliance on locally refined petroleum products would significantly reduce foreign exchange demand, strengthen the naira and provide a more stable and predictable supply of fuel nationwide.

He further argued that expanding domestic refining remains the most sustainable pathway towards achieving Nigeria’s long-term energy security and economic stability.

IPMAN also praised the Dangote Petroleum Refinery for ensuring uninterrupted fuel availability across the country despite recent global geopolitical tensions, including concerns over developments involving Iran and disruptions around the Strait of Hormuz.

According to the association, local refining has helped Nigeria avoid the severe fuel shortages that have historically accompanied disruptions in international crude oil and petroleum product supply chains.

The marketers observed that since the commencement of operations at the Dangote Refinery, Nigeria has experienced greater stability in the supply of petroleum products, with significantly fewer cases of prolonged fuel scarcity that previously disrupted economic activities and imposed hardship on households.

The association therefore urged the Federal Government to prioritise policies that promote local refining rather than expanding fuel import approvals.

It stressed that supporting domestic refineries would not only strengthen Nigeria’s industrial capacity but also create employment opportunities, stimulate economic growth and improve the country’s resilience against external market shocks.

IPMAN also called on the Presidential Committee overseeing reforms in the downstream petroleum sector to engage all critical stakeholders, including the Dangote Petroleum Refinery, with a view to developing practical measures for sustaining affordable fuel prices while guaranteeing adequate supply across the country.

According to the association, Nigeria stands to gain more by meeting domestic fuel demand through local refining while exporting excess production to earn valuable foreign exchange, improve the country’s balance of payments and strengthen the value of the naira.

The marketers maintained that a robust domestic refining industry would protect Nigerians from the volatility of the international petroleum market, reduce exposure to global supply disruptions and lower the landing cost of imported fuel.

IPMAN concluded by appealing to the Federal Government to urgently review the existing fuel import licence approvals and implement policies that encourage local refining, stabilise petroleum product prices and shield Nigerians from the burden of rising fuel costs.

The association insisted that strengthening Nigeria’s domestic refining capacity remains the most sustainable route to affordable fuel, economic stability and long-term national energy security.