BREAKING: IPMAN Urges FG to Scrap Fuel Import Licences as Petrol Prices Keep Rising

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Federal Government to urgently review and, where necessary, withdraw the recently approved fuel import licences issued to some petroleum products marketers, arguing that the approvals are contributing to rising fuel prices, foreign exchange pressure and instability in Nigeria’s downstream petroleum sector.

The association maintained that the current fuel import regime has failed to achieve its intended objective of moderating domestic petroleum products prices. Instead, it said the import licences have encouraged higher pump prices, increased dependence on foreign exchange and created unnecessary competition against locally refined petroleum products.

IPMAN’s National Publicity Secretary, Chinedu Ukadike, made the position known during an interview in Abuja. He urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited (NNPC Ltd.) and the Federal Government to reassess the policy in the interest of consumers and the nation’s economy.

According to Ukadike, independent marketers are concerned that some licensed importers are proposing to sell Premium Motor Spirit (PMS) at about ₦1,350 per litre, a price he described as significantly higher than the ex-depot price being offered by the Dangote Petroleum Refinery.

He argued that such pricing defeats the purpose of granting import licences as a measure to promote competition and stabilise the market.

He questioned the rationale behind importing petroleum products that are more expensive than those refined locally, stressing that the development has exposed Nigerians to unnecessary fuel price volatility. He added that marketers are finding it increasingly difficult to plan their operations because of the uncertainty created by fluctuating import costs.

IPMAN National Publicity Secretary also expressed concern over the quality of some imported petroleum products, alleging that certain fuel imports are questionable and may not meet expected standards. The association urged regulators to strengthen quality assurance measures and ensure that only products that comply with Nigeria’s specifications are allowed into the country.

Beyond pricing concerns, the association argued that continued fuel importation places additional pressure on Nigeria’s foreign exchange market. It noted that paying for imported fuel in foreign currency increases demand for the US dollar, weakens the naira and ultimately raises the overall cost of petroleum products across the country.

Ukadike further stated that the current policy undermines the country’s efforts to achieve energy security through domestic refining. He insisted that greater reliance on locally refined petroleum products would reduce foreign exchange demand, stabilise fuel supply and support the growth of Nigeria’s refining industry.

The Association’s helmsman praised the Dangote Petroleum Refinery for ensuring uninterrupted fuel availability despite global geopolitical tensions, including concerns over conflicts involving Iran and disruptions around the Strait of Hormuz. According to IPMAN, local refining has helped Nigeria avoid the severe fuel supply shortages that often accompany disruptions in international supply chains.

The IPMAN image maker maintained that since the commencement of operations at the Dangote refinery, Nigeria has experienced greater stability in petroleum product supply, with fewer cases of prolonged fuel scarcity that previously affected businesses and households across the country.

The Independent marketers therefore urged the Federal Government to prioritise policies that encourage domestic refining rather than expanding fuel import approvals. They argued that supporting local refineries would strengthen Nigeria’s industrial capacity, create jobs and improve the country’s economic resilience.

The association also called on the Presidential Committee overseeing reforms in the downstream petroleum sector to engage with stakeholders, including Dangote Refinery, to identify practical measures for sustaining affordable fuel prices while ensuring adequate supply for local consumption.

According to IPMAN, Nigeria stands to benefit more if locally refined petroleum products are supplied sufficiently to meet domestic demand while surplus production is exported to earn valuable foreign exchange. Such a strategy, it argued, would improve the country’s balance of payments and strengthen the naira over time.

The marketers emphasised that ensuring a stable domestic refining industry would not only protect consumers from volatile international oil market conditions but also enhance Nigeria’s long-term energy security. They warned that continued dependence on imported fuel could expose the country to recurring supply disruptions and higher landing costs.

IPMAN concluded by appealing to the Federal Government to urgently review the fuel import licence approvals and adopt policies that promote local refining, stabilise petroleum products prices and protect Nigerians from the burden of rising fuel costs. The association said strengthening domestic refining remains the most sustainable path towards affordable fuel, economic stability and national energy security.