LAGOS: Fresh controversy has erupted in Nigeria’s downstream petroleum sector after the Independent Petroleum Marketers Association of Nigeria (IPMAN) accused major fuel importers of fixing the price of imported Premium Motor Spirit (PMS), commonly known as petrol, at about ₦1,350 per litre a figure significantly higher than the price offered by the Dangote Petroleum Refinery.
The association says the development defeats the Federal Government’s objective of issuing import licences to encourage competition and reduce fuel prices for Nigerians.
Speaking on the development, IPMAN’s National Publicity Secretary, Chinedu Ukadike, expressed disappointment that import licenses granted to companies such as AA Rano and Matrix Energy have not delivered the expected benefits.
According to him, independent marketers had expected imported products to provide healthy competition that would moderate domestic fuel prices. Instead, he alleged that imported petrol is being sold at prices far above those offered by Dangote Refinery.
We are surprised that the companies granted import licences are pegging petrol at about ₦1,350 per litre, which is far higher than Dangote’s price, Ukadike said.
The concerns come as many marketers reportedly slow down large-scale fuel purchases while waiting for clarity on Dangote Refinery’s latest pricing structure and the landing cost of newly imported fuel.
Industry players say uncertainty over future prices has made many independent marketers cautious about making fresh purchases.
Ukadike urged the Federal Government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to urgently review the country’s fuel import policy.
According to him, regulators should ensure greater transparency in the issuance of import licences while addressing concerns over pricing mechanisms and the continued sale of petroleum products in United States dollars.
He argued that import licences were introduced to prevent excessive domestic fuel prices, but current market realities suggest the policy is not achieving its intended objective.
Beyond pricing, IPMAN also questioned the quality of some imported petroleum products, alleging that some shipments may not match the standards of locally refined fuel.
Ukadike further warned that increasing dependence on imported petrol is placing additional pressure on Nigeria’s foreign exchange market, especially as the naira continues to trade close to ₦1,400 to the US dollar.
He maintained that importing fuel from neighbouring countries such as Lomé at higher prices only increases demand for scarce foreign exchange while making petrol more expensive for consumers.
IPMAN reiterated its support for the Federal Government’s policy of selling crude oil to Dangote Refinery in naira.
According to the association, international PLATTS pricing for imported petrol remains roughly 20 per cent higher than the refinery’s ex-depot prices, making locally refined products more competitive.
Ukadike argued that sustaining domestic refining and maintaining naira-denominated crude supply would help stabilize petrol prices, reduce pressure on foreign exchange reserves and strengthen Nigeria’s energy security.
The latest concerns come weeks after the Federal Government convened a high-level meeting involving Dangote Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), PETROAN, IPMAN, MEMAN, DAPPMAN, NARTO, Matrix Energy, TotalEnergies, Eterna, and officials of the NMDPRA.
The meeting followed a directive by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, urging marketers to reduce pump prices in line with the recent decline in global crude oil prices.
The discussions focused on promoting fair competition in the downstream sector while ensuring that Nigerians benefit from lower fuel prices driven by market realities.
With disagreements over pricing, import licences and foreign exchange still unresolved, stakeholders say the coming weeks could determine whether competition in the downstream sector ultimately translates into cheaper petrol for consumers or prolongs the uncertainty surrounding fuel prices.
