IPMAN Questions Import Licences as Imported Petrol Sells Above Dangote Price

The Independent Petroleum Marketers Association of Nigeria has questioned whether fuel import licences are achieving their purpose, after imported petrol emerged priced above supply from the Dangote refinery.

National Publicity Secretary Chinedu Ukadike put imported product at around N1,350 per litre, roughly 20 per cent above what marketers pay for Dangote supply. The point he draws from it is that licences intended to increase competition and push prices down have delivered the opposite at the pump, and he raised questions about the quality as well as the pricing of imported cargoes. AA Rano and Matrix were named among those selling at higher levels.

Currency pressure sits behind the numbers, with the naira approaching N1,400 to the dollar and lifting the landed cost of anything bought in foreign exchange.

The association recommendation is to sustain crude oil sales to Dangote denominated in naira, on the argument that removing the currency conversion step from domestic refining is what keeps pump prices stable. The comments follow a Federal Government meeting with stakeholders earlier in July on fair pricing and market competition.

Source: The Sun