Why fuel import licences have failed Nigerians, IPMAN reveals as petrol hits N1,350

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that some fuel importers are selling imported petrol for about N1,350 per litre, a price far higher than what the Dangote Petroleum Refinery charges. The association argues that the Federal Government's fuel import licence policy has failed to increase competition and lower petrol prices as intended.

Importers pricing petrol above Dangote Refinery

IPMAN's National Publicity Secretary, Chinedu Ukadike, alleged that importers including AA Rano and Matrix are selling imported Premium Motor Spirit (PMS) for about N1,350 per litre. This is significantly above the prices offered by the Dangote Petroleum Refinery.

Ukadike said independent marketers had expected fuel import licences to act as a competitive check on locally refined products. However, he maintained that the policy has not produced the intended outcome. He called on the Federal Government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to review the policy and ensure greater transparency in its implementation.

He said: “We were shocked, even as I am talking to you now, that the licenses that have been given to AA Rano, Matrix and all the rest of them to be able to import petroleum products are trying to peg the price of petroleum products at N1,350, which is far, far distant from what Dangote has been selling to us.”

Quality concerns and forex pressure

The IPMAN spokesman also questioned the quality of some imported fuel, arguing that the products are not only more expensive but also raise concerns over standards. He added that imported petrol, priced using the international PLATTS benchmark, is roughly 20% more expensive than fuel supplied by Dangote Refinery, making imports less competitive.

Ukadike warned that continued reliance on costly fuel imports would increase demand for foreign exchange, pile pressure on the naira which is nearing N1,400 to the US dollar, and ultimately drive up pump prices.

IPMAN calls for naira crude sales and policy review

IPMAN urged the Federal Government to continue selling crude oil to the Dangote Refinery in naira, saying the arrangement would help stabilise domestic fuel prices, reduce pressure on the foreign exchange market and support the local currency. Ukadike also advised the government to avoid indiscriminate issuance of import licences, warning that allowing expensive imported fuel into the market could leave Nigerians paying more at the pumps instead of benefiting from increased competition.

What this means for Nigerians: If the government does not review the import licence policy and continues to allow expensive imported petrol into the market, Nigerians may face higher pump prices and a weaker naira, rather than the lower costs that competition was supposed to bring.