IPMAN faults ₦1,350/litre imported petrol pricing, questions effectiveness of fuel import licences

By Reporter

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has criticised the pricing of imported Premium Motor Spirit (PMS), alleging that some major fuel importers are selling petrol at about ₦1,350 per litre, well above prices offered by the Dangote Petroleum Refinery.

The association also questioned the effectiveness of fuel import licences issued by the Federal Government, arguing that they have failed to achieve the objective of moderating domestic petrol prices.

Speaking on the issue, IPMAN’s National Publicity Secretary, Chinedu Ukadike, said independent marketers were concerned that imported fuel was arriving at significantly higher prices despite the government’s intention to use imports as a competitive check on locally refined products.

According to him, marketers had expected import licences granted to major operators, including AA Rano and Matrix, to encourage price competition and lower pump prices rather than increase costs.

“We have carefully examined the issues surrounding price volatility, import licences and the sale of petroleum products in dollars, and we urge the Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to address these concerns transparently,” Ukadike said.

He argued that the policy of issuing import licences had not produced the expected outcome.

“The import licences were meant to serve as a check on domestic fuel pricing, but they are not delivering the desired results. We are surprised that some importers are pricing imported petroleum products at about ₦1,350 per litre, which is far above the price at which Dangote Refinery supplies marketers,” he added.

Ukadike also raised concerns over the quality of imported fuel, insisting that higher-priced imports should not undermine locally refined products.

“The purpose of opening up import licences was to promote competition. Instead, we are seeing imported products with questionable quality being sold at higher prices than locally refined fuel,” he said.

The IPMAN spokesman urged the Federal Government to provide greater clarity on fuel pricing, import licensing and the continued sale of petroleum products in foreign currency.

He warned that persistent price volatility was creating uncertainty for independent marketers and complicating business planning across the downstream sector.

Ukadike also expressed concern over the impact of increased fuel imports on Nigeria’s foreign exchange market, noting that continued reliance on imported products places additional demand on the US dollar and could further weaken the naira.

He called on the government to sustain the crude-for-naira arrangement with Dangote Petroleum Refinery, arguing that supplying domestic refiners with crude in local currency would help lower refining costs and support more affordable petrol prices.

According to him, imported petroleum products priced under the international Platts benchmark remain significantly more expensive than fuel refined locally, making imports less competitive.

He maintained that sourcing fuel from offshore markets such as Lomé at higher prices increases foreign exchange demand unnecessarily and adds pressure on the country’s external reserves.

Ukadike further cautioned against what he described as the indiscriminate issuance of fuel import licences, warning that such a policy could ultimately translate into higher pump prices for consumers.

He argued that Nigeria would derive greater economic benefits by strengthening domestic refining capacity rather than depending on imported petroleum products.

His comments come as marketers reportedly slow fresh product loading while awaiting further clarity on Dangote Refinery’s revised pricing template and the landing cost of recently imported cargoes.

Earlier this month, the Federal Government convened a meeting involving Dangote Petroleum Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and major downstream operators to discuss petrol pricing and competition in the sector.

Participants included representatives of TotalEnergies, Eterna, Matrix Energy, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), the Major Energy Marketers Association of Nigeria (MEMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), IPMAN, the Depot and Petroleum Products Retailers Association and the Nigerian Association of Road Transport Owners (NARTO).

The meeting followed a directive by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, urging marketers to adjust pump prices in line with the recent decline in global crude oil prices as part of efforts to foster a more competitive and transparent downstream petroleum market.