Imported Petrol at N1,350 per Litre Triggers Dispute
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has strongly criticised the pricing of imported petrol by major marketers, alleging that the Federal Government's fuel import licence policy is failing to deliver cheaper fuel to Nigerians. IPMAN's National Publicity Secretary, Chinedu Ukadike, revealed that some importers, including AA Rano and Matrix, are selling imported Premium Motor Spirit (PMS) for about N1,350 per litre. This price is significantly higher than the rates offered by the Dangote Petroleum Refinery, which has been selling fuel at lower prices to independent marketers.
Import Licence Policy Under Fire
Ukadike expressed disappointment that the government's import licence policy, intended to foster competition and reduce petrol prices, has not yielded the expected results. He noted that independent marketers had anticipated that granting import licences to multiple companies would create a competitive check on locally refined products. However, the reality has been different, with imported petrol prices far exceeding those from Dangote Refinery. He called on the Federal Government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to urgently review the policy and ensure greater transparency in its implementation.
“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,” Ukadike stated.
Quality and Forex Concerns
Beyond pricing, 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 explained 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, put pressure on the naira—which is nearing N1,400 to the US dollar—and ultimately drive up pump prices for consumers.
Call for Continued Naira Crude Sales
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.
