Oil marketers in Nigeria are poised to resume the importation of Premium Motor Spirit (PMS), commonly known as petrol, following discussions with top officials of the Nigerian Midstream and Downstream Petroleum Products Regulatory Agency (NMDPRA). The move comes as the Federal government seeks to break the monopoly of importation held by the Nigerian National Petroleum Company Limited (NNPCL).
The Group Chief Executive Officer of NNPCL, Mele Kyari, had recently expressed concern about the company being the sole importer due to the challenges faced by oil marketers in accessing foreign exchange. The current exchange rate, exceeding N1,000 per dollar, coupled with the rise in international crude oil prices, has elevated the landing cost of petrol to around N720 per litre.
In a meeting between oil marketers, represented by Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and Major Marketers Association of Nigeria (MOMAN), and NMDPRA officials, it was revealed that the federal government is implementing short-term measures to enable marketers to access foreign exchange at a rate that won’t disrupt fuel prices significantly. The specific details of these measures are being kept confidential for strategic reasons.
The government is also working on long-term fiscal and monetary strategies to strengthen the Naira. The speculative exchange rate of N1,000 to a dollar is acknowledged as unsustainable, and a multi-pronged approach is being adopted to stabilize the Naira. The goal is to create a competitive environment where oil marketers can access dollars at a sustainable and profitable rate, aligning with the deregulation policy.
Oil marketers have consistently advocated for a level playing field, urging the government to grant them access to foreign exchange at the official Central Bank of Nigeria (CBN) window. DAPPMAN Chairman, Dame Winifred Akpani, emphasized the importance of a fair and transparent system, stating that accessing foreign exchange through the CBN window would enhance capacity, facilitate seamless supply of PMS, and improve overall service levels.
As discussions continue, the government is working to ensure that NNPC’s exclusive role as the importer of fuel in the deregulated market comes to an end, fostering a more dynamic and competitive landscape.
