IPMAN Rejects New Import Licenses for Petroleum Products

The Independent Petroleum Marketers Association of Nigeria (IPMAN), represented by Chinedu Ukadik, has rejected the recent approval of additional import licenses for petroleum products, stating that it will worsen price volatility and place unnecessary pressure on the naira. Ukadik urged the federal government to address this issue transparently, emphasizing that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) should ensure that import licenses serve to check domestic refining rather than exacerbate the situation.

He noted that the cost of importing petroleum products is approximately 20% higher than the prices charged by Dangote Refinery, questioning the rationale behind granting these licenses. Ukadik linked the pressure on the naira to the recent rise of the dollar to N1,400, which has affected pump prices across the country.

He called for a commitment from the federal government to support local refining capacities, including government-owned refineries, to guarantee energy security and sufficient local supply while reducing dependence on imports.