See why marketers wants to keep importing petrol from abroad despite Dangote refinery

• Nigerian fuel marketers are applying for more petrol import licenses from the Federal Government
• The oil marketers believe that the importation will boost supply and help reduce retail prices due to competition
• Dangote Reifney has consistently stressed that its refinery has the capacity to meet the petroleum demands of Nigeria

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Fuel marketers in Nigeria are pursuing additional petrol import licenses from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)

The move comes after the marketers accused the Dangote Refinery of selling petrol to Nigerians at prohibitive prices, which they argue are putting strain on consumers.

Oil marketers move to import fuel from abroad Photo credit: Bloomberg/contributor
Source: Getty Images

Punch reports that members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) are serious about getting more licences.

The report added that IPMAN and PETROAN are awaiting the necessary approvals from the Central Bank of Nigeria (CBN) and the NMDPRA to proceed.

The marketers contend that importing cheaper petrol could provide relief to Nigerians who are battling with high fuel prices.

Joseph Obele, PETROAN’s National Public Relations Officer, alleged that the Dangote Refinery is trying to dominate the market and block competitors.

He said:

“Dangote is just out to close all the doors and windows so that no one else can enter the market"

Obele asserted that PETROAN’s trading wing applied for an import licence a month ago and is determined to bring in high-quality fuel at competitive prices to reduce costs for Nigerians.

Obele urged Nigerians to support efforts to dismantle monopolistic structures, saying:

“We are trapped with exploitation, and the only way out is to dismantle every dimension of monopoly. We are calling on Nigerians to support us in this cause.”

NMDPRA on petrol import licences

However, NMDPRA has refuted any suggestion that the two associations would be granted a collective import licence, stating that only individual applications are permitted under the law.

An anonymous NMDPRA official was quoted as saying:

,“They can’t apply for a petrol import licence as an association. Individual marketers have to apply by themselves. We are not going to give the permit jointly.”

Ghana proposes ECOWAS currency for Dangote petrol

Meanwhile, Legit.ng earlier reported that Ghana hinted that African countries would agree on a common currency to buy Dangote petrol to dampen demand for dollars.

The West African nation also expressed interest in buying petroleum products from the refinery once it is operating at full capacity.

The head of the country's oil regulator said that patronising the Nigerian refinery would cut more expensive exports from Europe.

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Source: Legit.ng