Oil Marketers Unite: Resuming Fuel Importation Across the Globe
Oil marketers in the country are preparing to resume the importation of fuel following the recent deregulation of the downstream oil sector. The new regulations will allow fuel importers to source for foreign exchange and set their own prices, creating more operational freedom and cost savings for oil marketers. The new measures will provide consumers with more options in the fuel market, allowing for greater access to affordable fuel. With the new regulations in place, the oil marketing sector is projected to be reinvigorated and continue to play an important role in the country's economic growth.
Oil marketers in Nigeria are set to resume the importation of Premium Motor Spirit (PMS), also known as petrol, as the government moves to put an end to the Nigerian National Petroleum Company Limited's (NNPCL) monopoly on importing fuel. The decision comes after a meeting between the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the Major Marketers Association of Nigeria (MOMAN) with officials from the Nigerian Midstream and Downstream Petroleum Products Regulatory Agency (NMDPRA) earlier this week.
The Group Chief Executive Officer of the NNPCL, Mele Kyari, expressed concern last week about oil marketers' inability to import fuel due to their inability to access foreign exchange, which led to the NNPCL becoming the sole importer of petrol once again. The current exchange rate of over N1,000 per dollar and the rise in crude oil prices in the international market have contributed to the increase in the landing cost of a litre of petrol to about N720.
To address these challenges, the federal government is working on short-term measures to allow oil marketers access to foreign exchange at a rate that will not significantly impact the price of fuel. The details of these measures will remain undisclosed for now. The government is also planning long-term measures to strengthen the Naira.
The government recognizes the importance of a competitive market and is committed to ensuring that NNPC is not the sole importer of fuel. The aim is to support the deregulation policy of the government. Oil marketers have consistently called for a level playing field and access to foreign exchange at the official CBN window to ensure smooth transactions and create opportunities. DAPPMAN Chairman, Dame Winifred Akpani, urged the government to consider this request as a matter of urgency, as their ability to import petroleum products is hindered without a level playing field and access to dollars.
