Marketers Taking Delivery Of Their Imported Petrol To Break NNPC Monopoly

Three major petroleum products marketers have started taken delivery of petrol they imported into the country, in the wake of the petrol subsidy removal. The marketers are Emadeb Energy Services Limited, AYM Shafa and Prudent.

AYF Shafa and Prudent started taking delivery of their imported petrol on Wednesday. Also, Emadeb Energy, a depot owner, took delivery of 27 million litres of petrol on Wednesday.

Chief Executive Officer of Emadeb, Debo Olujimi, inaugurating the intake at the company’s depot at Ijegun, said the imported 27 million litres costs $17 million, due to the rise in foreign exchange rate.

With the development, marketers are gradually ending the monopoly of the Nigerian National Petroleum Company Limited (NNPCL) in petrol importation into Nigeria.

Chief Executive officer of Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, said 56 marketers were issued licence to import petrol between this month and September.

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While speaking at the ceremony, Olujimi said petrol importation was no longer sustainable. According to him, resuscitating local refining was the way to go.

He said, “Petrol importation is not a sustainable way for a country to run. From what we saw yesterday when PMS price rose to over N600 per litre, it is an indication that the dynamics of the business is a tough one. It requires huge US dollars to bring in this. The way forward is for local refineries to be revived,” he said.

Representing the Chief Executive Officer, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, Sadiq Bashir, explained that the development was an important milestone since the downstream sector was deregulated.

He said, “This is what we have been looking forward to. When we talk about deregulation, people think it’s all about increasing prices. No. Although prices would now be determined by market dynamics, deregulation also opens up the market for other players to come in.

“Yes, we would experience teething problems at first; however, if market forces are allowed to come into play, prices would eventually go down due to high competition. We assure that NMDPRA would continue to ensure quality control of products being sold to the public.”

General Secretary, the Natural Union of Petroleum and Natural Gas Workers, Afolabi Olawale, also canvassed for local refining.