Fuel Import Licences Sparks Outrage Among Marketers, IPMAN Warns Of Economic Consequences

The recent approval of new fuel import licences has sparked outrage among independent petroleum marketers in Nigeria. According to the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, the move could exacerbate price volatility and put undue pressure on the naira. Ukadike argued that some companies granted import licences were selling their products at around N1,350 per litre, which is significantly higher than the price at which the Dangote refinery sells to marketers. He questioned the rationale behind the licences, stating that the goal of checking the domestic price of products had been defeated. The IPMAN spokesperson noted that the price volatility was having a direct impact on independent marketers, with landing costs for imported petroleum products about 20 per cent higher than what the Dangote refinery charges. This, he said, makes the import arrangement counterproductive and puts unnecessary pressure on Nigeria's foreign exchange reserves and the naira. Ukadike linked the pressure to the recent rise of the dollar to about N1,400, which he said was affecting the pump price of petroleum products across the country. He called on the federal government to support the Dangote refinery and ensure it continues to receive the necessary support to produce enough petroleum products for the country, in naira. The IPMAN spokesperson emphasized the need for stronger support for local refining capacity, including government-owned refineries, to guarantee energy security and sufficient local supply. He added that Nigeria could explore the export of finished petroleum products as an additional source of foreign exchange, once local supply is sufficient for domestic consumption. Since local refining by Dangote began, the country has experienced a continuous and uninterrupted supply of petroleum products, which was not the case when Nigeria depended heavily on imports. Ukadike urged the federal government to look inward and support the domestic refining of petroleum products to guarantee energy security, sufficient local supply, and additional foreign exchange earnings.