The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Wednesday, disclosed that it had begun the process of licensing additional oil marketers to begin importation of petrol, thereby breaking the monopoly of the Nigerian National Petroleum Company Limited (NNPC).
Other things being equal, as the market expands and more entities are allowed to import products, Nigerians are expected to be the ultimate winners as prices of petrol would likely fall due to competition, given that operations do not engage in price fixing.
Speaking in Abuja after meeting with the marketers at the agency’s headquarters, the Chief Executive of the NMDPRA, Mr. Farouk Ahmed, explained that the industry regulator would not allow businessmen operating in the downstream exploit Nigerians even in a deregulated market.
Ahmed noted that as the NNPC starts slowing down on importation in deference to the Federal Competition and Consumer Protection Council (FCCPC) regulation which prohibits one entity or individual from controlling more than 30 per cent of the market, there was a need to fill the gap being created by the new development.
“Like I said, the market is open already. We have to follow the regulations. So, we will put out policies that are user-friendly. Some of them (oil marketers) have already started putting their applications in because we don’t want to create a gap.
“NNPC is slowing down on their importation, so we need to have someone closing up the gap that NNPC is creating so that we don’t have a shortage in the country.
“But NNPC being a responsible organization, is also monitoring what other replacements they have, so we agree that NNPC will continue to import until such a time when we have a critical mass of other importers.
“The licences, we are processing them. Some or about two to three marketers already came to us last week to say that they have already booked cargoes to come in July. So, these are some of the very interesting things that we have received propositions for, which are very interesting and we are fast-tracking the licenses to make sure they import.
“We are interacting with the NNPC every day to ensure that the market is well supplied and there’s no gap in importation,” he stated.
On the availability of foreign exchange (FX) for importation, Ahmed stated that since the market had been deregulated, marketers could begin to source for FX where it is available without resorting to the government.
“For FX, the market is deregulated, so, I don’t believe we should subsidize our FX or that they should go to the Central Bank of Nigeria (CBN). The price that NNPC rolled out which they sell now, took cognizance of the exchange rate, not at the NNPC rate.
“So, if the exchange rate is N650 to a dollar, if the naira improves, the price will change, so it can go either way,” he argued.
President Bola Tinubu had during his inauguration on May 29, announced that fuel subsidy had been removed, with the NNPC thereafter rolling out its projected prices in several locations in the country ranging from N488 to N557.
Ahmed maintained that the issue of standardization of products had become imperative in order to avoid situations where consumers will be short-changed when products that are of lower quality are imported into the country.
He also said that during the meeting, the oil marketers agreed to improve their level of collaboration with security agencies to ensure the smooth movement of petroleum products.
“We called for this engagement so that we can align and also roll out our policies in terms of requirements for importation of Petroleum Motor Spirit (PMS). Of course, we have been engaging and directing all through, but we thought it was necessary to meet again for more clarity regarding the way forward,” he added.
He noted that the NMDPRA was giving priority to transparency in the importation of petrol, both by oil marketers and the national oil company to ensure that consumers get value for money.
“We discussed the issue of quality of product importation, which is a very important aspect as well. So, we deliberated on how products distributed locally meet the requirements so that the consumer is not negatively affected,” he said.
Due to logistics reasons, Ahmed noted that the prices of petrol would not be the same nationwide, explaining that the bridging or equalization fund has now been expunged. He added that there would be no price capping by NMDPRA to ensure that the price is reflective of the market, but that blatant exploitative tendencies will be frowned upon.
“Prices will not be the same all across the country because of local transportation logistics. For example, the price in Lagos being the main receiving location for imports will not be the same thing, the same price in Ibadan, Sokoto or Maiduguri,” he pointed out.
Besides, he said that a small team will also be raised to look at the PIA amendment which currently screens out certain entities from bringing in the product into the country.
Emmanuel Addeh
Follow us on:
Gbadebo Rhodes-Vivour has condemned the commercialisation of GMO seeds, warning of threats to Nigeria’s food…
Oleksandr Usyk has secured victory over Tyson Fury in Riyadh, successfully defending his heavyweight championship…
Albania plans a one-year TikTok ban from January after a schoolboy’s death sparks concerns over…
A suspect accused of killing five people by driving into a crowded Christmas market in…
A US Navy F/A-18 Hornet was mistakenly shot down over the Red Sea by the…
NNPC has reduced petrol ex-depot price to N899 per litre, sparking competition with Dangote Refinery…
View Comments
O7O 4540 6674SOME CAR LIST BELOW.
Golf 2 3 4 500k __ 700k
O7O 4540 6674
2003 Matrix N1m80k
2001 Honda CRV 800k
2003 Honda Element 950k
2003 Camry 990k
2006 Honda Ridgeline 2.6m
2012 Camry LE 2.750m
Camry Spider 950k
Camry Muscle 850k
2013 Ford Edge SEL 3.9m
2014 Ford Edge SEL 4.3m
Fresh like toks 2013 Benz E200 N8.2m
2008 Rav4 1.9m
2014 Kia Cerato 2.9m
2011 Benz GLK350 5m
2014 Range Rover evogue 6.650m
2006 Quest 850k
2008 Kia Rio 900k
2008 Camry Xle 1.680m
TOKUNBO CARS BELOW :�
O7O 4540 6674
2004 Corolla Sport 1.8m
2006 Corolla Sport 1.970m
2010 Corolla Sport 2.980m
Awoof 2008 Lexus RX350 3.5m
2003 Camry XLE - Back Vent AC - V4 - 1.580m
2001 Camry N1.280m
2003 Camry N1.520m
2005 Camry LE 1.680m
2005 Matrix 1.7m
2007 Toyota Camry 2.3m
2008 Camry Sport 2.850m
O7O 4540 6674
2007 Rav4 Sport N2.8m
2011 Honda pilot EX 4.4m
2005 Benz E320 N2.4m
1999 Sienna 1.550m
2000 Lexus RX300 1.9m
Pegeout 407 Manual AC 800k
2008 Honda CRV EX 2.850m
2009 Corolla XLE - Alloy + Formica 2.850m
2004 Toyota LandCruiser 4.5m
2004 Corolla LE 1.8m
2010 RX350 1.6m with Mouse
2011 RX350 2m with mouse 6.550m
2008 Toyota Tacoma 6.8m
2006 Avalon Thumbstart 2.5m
2007 Avalon key 2.1m〽.INSTALLMENTAL PAYMENT IS FULL ALLOWED!!All VEHICLES ARE HIGHLY NEGOTIABLE〽WE COMMENCE DELIVERY WITHIN 36 STATE IN NIGERIAO7O 4540 6674