The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Federal Government to urgently review and, where necessary, withdraw the fuel import licences recently issued to petroleum marketers, warning that the policy is driving up petrol prices, piling pressure on the naira and undermining Nigeria’s domestic refining capacity.
The association argued that the continued importation of Premium Motor Spirit (PMS) no longer serves the national interest, especially with the Dangote Petroleum Refinery supplying refined products locally.
Speaking in Abuja, IPMAN’s National Publicity Secretary, Chinedu Ukadike, said the import licences had failed to achieve their intended objective of moderating fuel prices and promoting healthy competition in the downstream sector.
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Instead, he said, imported petrol is arriving at significantly higher prices than locally refined products, leaving Nigerians to bear the burden of rising pump prices.
According to him, some importers are proposing to sell petrol at about ₦1,350 per litre, a figure he described as far above the ex depot price offered by Dangote Refinery.
Ukadike questioned the rationale behind approving the importation of fuel that is more expensive than products refined within Nigeria, insisting that such a policy only fuels inflation and market instability.
He called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited (NNPC Ltd.) and the Federal Government to reassess the import licensing regime in the interest of consumers and the broader economy.
“The purpose of granting import licences was to encourage competition and reduce prices, but what we are seeing today is the exact opposite. Nigerians are paying more for imported fuel when local refining offers a cheaper alternative,” he said.
The association also raised concerns over the quality of some imported petroleum products, alleging that certain imports do not meet expected standards.
It urged regulators to strengthen quality assurance measures to ensure that only products that comply with Nigeria’s specifications are allowed into the country.
Beyond pricing and quality concerns, IPMAN warned that continued dependence on imported fuel is placing additional strain on Nigeria’s foreign exchange market.
According to the association, paying for imported petroleum products in foreign currency increases demand for the US dollar, weakens the naira and ultimately pushes up fuel prices across the country.
Ukadike argued that supporting domestic refining would significantly reduce the country’s foreign exchange burden while strengthening energy security.
He said greater reliance on locally refined petroleum products would guarantee more stable supplies and encourage investment in Nigeria’s refining industry.
IPMAN also praised the Dangote Petroleum Refinery for maintaining uninterrupted fuel supply despite recent geopolitical tensions, including concerns over the conflict involving Iran and potential disruptions around the Strait of Hormuz.
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According to the association, local refining has insulated Nigeria from the severe supply shocks that typically accompany disruptions in global petroleum markets.
The marketers noted that since Dangote Refinery commenced operations, Nigeria has experienced improved fuel availability and fewer episodes of prolonged scarcity that previously disrupted businesses and households.
The association therefore urged the Federal Government to prioritise policies that support local refining rather than expanding fuel import approvals.
It maintained that encouraging domestic refining would create jobs, strengthen Nigeria’s industrial base and improve long term economic resilience.
IPMAN also called on the Presidential Committee overseeing reforms in the downstream petroleum sector to engage stakeholders, including Dangote Refinery, to develop practical measures for ensuring affordable fuel prices while maintaining adequate supply.
According to the association, Nigeria stands to benefit more if locally refined petroleum products meet domestic demand, with surplus production exported to earn valuable foreign exchange.
Such an approach, it said, would improve the country’s balance of payments, strengthen the naira and reduce exposure to volatile international oil markets.
IPMAN warned that continued dependence on imported fuel could leave Nigeria vulnerable to recurring supply disruptions and rising landing costs, insisting that a robust domestic refining industry remains the most sustainable path to affordable fuel, economic stability and long term energy security.
The association concluded by urging the Federal Government to immediately review the fuel import licence approvals and adopt policies that place local refining at the centre of Nigeria’s downstream petroleum strategy.
