The Independent Petroleum Marketers Association of Nigeria (IPMAN) has kicked against the issuing of licences to some companies for the purpose of importing petroleum products into the country.

In a voice note released to journalists in Abuja today (Sunday), IPMAN National Publicity Secretary, Chinedu Ukadike, said the move is worsening price volatility of petroleum products in the country, as well as putting unnecessary pressure on the naira.

Ukadike who spoke with regard to recent developments in the downstream sector of the petroleum industry, said independent marketers had studied the developments closely, especially price volatility, the import licencing regime, and the sale of petroleum products in dollar, and came to the conclusion that the recent issuing of licences to some companies for the importation of petroleum products is not in the best interest of Nigerians.

He therefore called on the Federal Government to look into the matter transparently through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), with a view to reviewing the move.

He said that the Issuing of licences for the importation of petroleum products which is meant to serve as a check on the prices of domestically refined petroleum products, is not achieving the results expected by independent marketers. He explained that landing price of petrol is N1,350 or about 20 per cent higher than the price being sold by Dangote Refinery, which he argued makes the importation of the product counterproductive. He argued that importing petroleum products at a higher cost than locally available products does not make economic sense.

Ukadike linked the granting of licences for the importation of petroleum products to recent pressure on the naira which has led to the depreciation in the exchange rate of the currency to N1,400 to the dollar, which he said, in turn, was affecting the pump price of petroleum products across the country.

He noted that the one major gain Nigeria has recorded from local refining is a continuous, uninterrupted supply of petroleum products, something the country struggled with in the past when it depended heavily on imports.

“If we have a continuous, uninterrupted supply, our problem is pricing. Is it not better to sit down and see how this issue can be controlled than to sign unnecessary import licences that will further inflate the price of petroleum products in our country?” he asked.

Ukadike called for stronger support for local refining capacity, including government-owned refineries alongside Dangote Refinery, describing this as necessary for the country’s energy security. He said Nigeria should prioritise its own refining capacity rather than depend on imports.

He said that since the Dangote Refinery came on stream, scarcity of petroleum products which was a perennial problem has become a thing of the past.

He therefore urged the Federal Government to look inward and support the domestic refining of petroleum products to guarantee energy security, ensure sufficient local supply, and generate additional foreign exchange for the country through exports.