Petrol Prices Will Come Down As Marketers Begin Importation, FG Says

On Monday, July 17, 2023, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) revealed that oil marketers have started importing petrol into Nigeria. 

Prior to this, the importation of petrol consumed in Nigeria was mostly carried out by NNPC. However, out of the 56 oil marketing firms that applied for petrol importation licenses, 10 had shown commitment, while three imported fuel into Nigeria, Faroul Ahmed, The Chief Executive Officer of NMDPRA, said. 

He listed three companies, A.Y. Ashafa, Prudent, and Emadeb, adding that more companies would import in the coming weeks. The Chief Executive Office of NMDPRA also expressed the commitment of the Nigerian government to deregulating the industry in line with the Petroleum Industry Act (PIA). 

Ahmed noted that the challenges that previously impacted the importation of the product are currently being addressed. 

In a report from Vanguard, oil marketers recently asked the Nigerian government to tackle insecurity and suspend the 7.5% Value Added Tax (VAT) on diesel as part of the ways required to impact operations in the sector. They also asked the Nigerian government to address food prices and transportation in the country to impact the well-being of Nigerians through the recent deregulation of the oil sector. 

According to the federal government, there are more than 9,000 licensed filling stations across Nigeria fit for co-location of facilities that dispense autogas fuel. 

A communique issued by the Nigerian Institute of Transport Technology (NITT) by the Nigerian government disclosed at the end of a stakeholders’ meeting the provision of a technical workforce and facility for developing and promoting autogas as a transport fuel in Nigeria.