Petrol imports drop as FX shortage squeezes marketers

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed that the decrease in the number of permitted importers delivering cargoes of petrol into the country was due to the difficulty of Forex illiquidity.

The Regulatory Authority said this development has limited the ability of the oil Marketing companies to import the commodity.

Farouk Ahmed, Chief Executive, of the NMDPRA, said this on Monday during the opening session of the Oil Trading and Logistics (OTL) Africa Week 2023 in Lagos.

He said that eight (8) wholesale petroleum product suppliers out of 94 licensed oil marketers were granted import permissions and supplied eight cargoes of PMS totalling 251,000 MT (291,238,670.69 litres) between June and September 2023.

However, he expressed confidence that the government’s efforts to restore the stability of the harmonised FX market will assist in the importation of Premium Motor Spirit (PMS), also known as petrol, by other oil marketing companies in addition to the state-owned oil companies.

“Supply of petroleum products is expected to be further enhanced and secured by the coming onstream of Dangote Refinery and the rehabilitation of Nigerian National Petroleum Company (NNPC) Limited refineries in the short to medium term.

Read also: Dangote refinery to displace fuel imports by 2024 – EIU

Speaking of the Nigerian government’s attempts to ensure that the country’s overall national energy security is managed in a way that optimizes position within the complicated global energy dynamics,

The NMDPRA boss said that the acceptance of gas as a transition fuel and the establishment of strategic gas development frameworks under the Decade of Gas Program (DOGP) are important pillars for pursuing an organised energy transition in Nigeria.

“The DOGP will ensure the accelerated growth of gas processing, storage, transportation, retail, and utilisation in Nigeria within the decade. The program has optimal industry inclusiveness and is making steady progress in the implementation of all its strategic objectives, initiatives, and projects.

Ahmed therefore emphasised that the full deregulation of the sector has further enhanced our capacity to adopt CNG as a more sustainable and affordable alternative automotive fuel.

“President Bola Ahmed Tinubu has launched the Presidential initiative on CNG (PiCNG), with the focus of providing immediate and long-lasting infrastructure for modern mass transit systems.”

According to him, the PiCNG has already commenced work and is adequately supported with all necessary tools including required funding to meet its aspirations.