IPMAN opposes rising petrol imports, warns of higher pump prices

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has raised concerns over the recent increase in petroleum product import licences, warning that the development could worsen price instability, increase pressure on the naira and push petrol prices higher.

National Publicity Secretary of IPMAN, Chinedu Ukadike, who spoke on Sunday, said the association was worried that imported petrol was entering the market at prices above locally refined products, undermining efforts to stabilise the downstream sector.

His comments came amid fresh increases in petrol pump prices by some marketers following a rise in crude oil prices and adjustments in depot prices by Dangote Refinery and other suppliers.

Checks by Vanguard on Sunday showed that some retail outlets had adjusted their prices upward after an increase in depot costs. AYM Sharfa, which previously sold petrol at N1,191 per litre, raised its price to N1,220 per litre at the weekend.

Ukadike said independent marketers had reviewed developments in the downstream sector, including the import licence regime, price fluctuations and the increasing use of foreign exchange for petroleum transactions.

He urged the Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to urgently address the challenges affecting pricing and supply stability.

According to him, the recent approval of import licences, which was expected to serve as a competitive check on domestic refinery prices, had instead introduced more uncertainty into the market.

Ukadike said some companies granted import licences were offering petrol at about N1,350 per litre, a price he described as higher than the rate at which Dangote Refinery supplies marketers.

“What is the essence of issuing this price? This will create a lot of tension in society,” he said, warning that continued volatility was making business planning difficult for independent marketers.

He argued that imported petrol has a landing cost estimated to be about 20 per cent higher than locally refined products from Dangote Refinery, adding that reliance on costly imports was putting additional pressure on Nigeria’s foreign exchange reserves.

Ukadike linked the pressure on foreign exchange to the depreciation of the naira, noting that fluctuations in the exchange rate were contributing to higher petrol prices nationwide.

He called on the government to engage stakeholders in the downstream sector and resolve issues affecting domestic refining capacity to encourage sustained production of petroleum products in naira.

The IPMAN spokesman said the major benefit of increased local refining capacity had been the elimination of prolonged fuel scarcity associated with Nigeria’s previous dependence on imports.

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

He urged the government to strengthen support for both public and private refineries, saying Nigeria must prioritise domestic production to achieve energy security.

“Nigerians are suffering. This is a time to call for national unity, a time to call for support for our industrialists and our refiners,” he said.

Ukadike added that with sufficient refining capacity, Nigeria could transition from importing petroleum products to exporting refined products and generating additional foreign exchange.

He recalled that during periods of heavy dependence on imports, the country experienced prolonged fuel shortages, stressing that expanding domestic refining remained critical to reducing economic pressure and ensuring a stable supply of petroleum products.