The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed serious concern regarding the surge in petroleum import licences. Chinedu Ukadike, the group’s National Publicity Secretary, cautioned that relying on imported fuel threatens to destabilize market prices, strain the naira, and drive pump prices upward.
Ukadike noted that imported fuel is entering the country at rates exceeding those of domestically refined products. This trend complicates efforts to maintain stability in the downstream sector. Recent adjustments at retail outlets, such as AYM Sharfa raising prices to N1,220 per litre, reflect rising depot costs linked to global crude prices.
IPMAN is urging the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intervene. Ukadike highlighted that some firms holding import licences are supplying petrol at approximately N1,350 per litre, which is more expensive than supplies from the Dangote Refinery. He argued that these imports put unnecessary pressure on foreign exchange reserves and exacerbate inflation.
To achieve energy security, the association advocates for increased domestic refining capacity. By prioritizing local production, Nigeria could stabilize the supply chain and potentially transition into an exporter of refined products. Ukadike emphasized that the government must engage stakeholders to address these pricing challenges and support local industrialists to alleviate the financial burden on citizens.
