• Sunday, May 19, 2024
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NMDPRA to issue licenses for marketers to import petrol as NNPCL reclines

Petrol imports drop as FX shortage squeezes marketers

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed that it is set to start issuing licenses to oil marketing companies that are ready to start importing Premium Motor Spirit (PMS) post deregulation.

Farouk Ahmed, Authority Chief Executive Officer, NMDPRA said this while speaking to journalists on Wednesday in Abuja after an engagement with oil marketing companies on post PMS deregulation expectations.

“The market is open already we have to follow the regulations and we have rolled out policies that are user friendly and some of them have started putting their obligations in place,” he said.

He said that since Nigerian National Petroleum Company Limited (NNPCL) is slowing down its importation there is need to have people who will fill the gap especially if they meet the requirements in avoid fuel shortage in the country.

“We agree that NNPCL will continue to import until we have critical mass of importers; About two or three marketing companies have reached out to us and booked cargos coming in July and we are fast-tracking the process of issuing their license to import,” he said.

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Ahmed said NNPCL will drop down their importation to 30 or 40 percent maximum following the provisions of the FCCPC that nobody should exceed 40 percent of the market share.

“We are also interacting with the NNPCL to ensure that the market is well supplied and there is no cap in importation; NNPCL is also monitoring what other replacements they have,” he said.

Speaking on FX exchange rate, Ahmed said since the market is deregulated there is no need to subsidize FX for imports, adding that NNPCL arrived at the current price was using an exchange rate of N650 to a dollar.

He reiterated that there is no price capping anymore as the market is now deregulated, hence the price will be reflective of the market, however if the the Naira improves the price will change.

He also said that due to issues around logistics and distribution cost, the price of pms will not be the same across the country.