The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced that three oil marketers will start importing petrol into Nigeria in July 2023. The NMDPRA made this statement through a social media post, stating that the Nigerian National Petroleum Company Limited (NNPCL) will no longer be the sole importer of petrol….CONTINUE READING>>>
This move aims to introduce competition in the petrol importation sector and potentially improve the availability and pricing of petrol in the country.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced that starting from July this year, three oil marketers will begin importing petrol into the country.
The Authority made this statement known through a social media post on Wednesday, June 14. According to the Chief Executive Officer of the Authority, Engr. Farouk Ahmed, this decision means that the Nigerian National Petroleum Company Limited (NNPCL) will no longer be the exclusive importer of petrol in Nigeria.
The statement read as follows:
“The Authority held a meeting today with oil marketing companies to raise awareness of the requirements of the Petroleum Industry Act (PIA) regarding the full deregulation and importation of petrol.
“The Authority Chief Executive, Engr. Farouk Ahmed emphasized the urgent need for product standardization to prevent situations where consumers might be cheated by the importation of off-spec products into the country.
“He said NNPC Ltd had agreed to reduce its petrol import volume to give room for other players in the industry, therefore any marketer licensed to import petroleum products must comply with set guidelines.
“Already, three oil marketers will from July this year start importing petroleum products into the country. Ahmed revealed that the oil marketers also reached an agreement to enhance cooperation with security agencies, with the aim of facilitating the seamless supply and distribution of petroleum products nationwide.”
Backstory
Over a week ago, the Group Chief Executive Officer of the NNPCL, Mele Kyari told Reuters during an interview that soon, private firms in Nigeria will start importing petrol into the country as early as June 2023.
According to Kyari, private firms in Nigeria will have the opportunity to import fuel starting from June 2023, as the Nigerian National Petroleum Company Limited (NNPCL) plans to end crude oil swap contracts and switch to cash payments for petrol imports.
He also stated:
“In the last four months, we practically terminated all Direct Sale Direct Purchase (DSDP) contracts. And we now have an arm’s-length process where we can pay cash for the imports.
“This is the first time NNPC has said it is terminating crude swap contracts. By importing less gasoline as private companies import the bulk, NNPC will be able to pay for its purchases in cash.”
Kyari had earlier told Arise TV in an interview, that investors have been reluctant to put their money into Nigeria’s oil and gas sector because of the fuel subsidy regime which did not guarantee repayments. However, since the fuel subsidy has been removed, the market will regulate itself and oil marketing companies will be able to import petrol or produce locally. So, it is expected that all these will convince investors to participate in the sector….CONTINUE READING>>>