IMPORTING FUEL: MARKETERS CALL FOR FAIR ACCESS TO FOREIGN EXCHANGE

Oil marketers predicted that once they obtained the foreign exchange rate on the black market for the importation of PMS, the ex-depot price of Premium Motor Spirit, also known as gasoline, would reach N515/litre.

The ex-depot price, which marketers use to set the price at which they sell goods to drivers at gas stations, is the price at which marketers purchase goods at the depot.

The Federal Government was urged by dealers operating under the Independent Petroleum Marketers Association of Nigeria to give marketers the chance to begin importing gasoline by granting dealers access to foreign exchange.

Since other marketers were unable to access the US dollar, they stopped importing PMS into Nigeria, leaving only the Nigerian National Petroleum Company as the sole importer at the moment.

Additionally, marketers said that the current ex-depot price of gasoline sold by NNPCL Retail was N467.39/litre and noted that this was due to the national oil company obtaining their currency at a lower cost.

We are dealing with the parallel market exchange rate of N761 to $1 at the moment that I'm speaking with you since that is where the majority of marketers get their money. The ex-depot price of NNPCL is unaffordable for other marketers since they (NNPCL) obtain their currency at a lower rate, which is N461/$ CBN.

As a result, if any marketer is importing today, the lowest ex-depot price that has been computed for us is not less than N505/litre; some are as high as N511/litre, while others are as high as N515/litre, according to one oil marketer who begged to remain anonymous to prevent retaliation.

The insider responded when asked if marketers had begun importing PMS, We have not started. NNPCL is still providing, and they are requesting that we come and make up the difference between the old amount they provided us and the new one they want to charge us. They are currently selling to us at the deregulated pricing.

Oil marketers argued that it was preferable for everyone to access dollars at the same rate and stressed that it would not be fair to private dealers if the NNPCL continued to obtain foreign exchange at a lower cost than other marketers.

When asked what the NNPCL ex-depot price was, the insider stated, “It is N467.39/litre, and that is for NNPCL Retail.”

ACCORDING TO IPMAN, LET MARKETERS IMPORT FUEL.

Ukadike urged the government to allow oil marketers to begin importing gasoline now that the good had been deregulated.

The IPMAN official acknowledged that the absence of the US currency posed difficulties, but maintained that the government should permit marketers to acquire foreign exchange in the same way that the NNPCL did.

In addition, the Nigerian Midstream and Downstream Petroleum Regulatory Authority declared that it would no longer set the price of gasoline or issue templates for the product; rather, this would be handled by marketers. This announcement related to the pricing of PMS and its imports.

To see if private sector importers can import the commodity more affordably or not, the NNPCL is importing and has not given consumers the opportunity to join them in importing. Therefore, there is no rivalry. Everyone with capacity should be able to import under a deregulated system, according to Ukadike.

Since the government had finally deregulated the price of gasoline, Ukadike was asked if other marketers would now start importing again. He responded, Marketers can import, but let me tell you some of the things militating against this. First off, there won't be any money available.

In other words, we are arguing that the advantages NNPCL enjoys should be shared with other significant petroleum product importers. In order for independent participants, like IPMAN members, to band together to pay and be able to use it in the buy-back model, they should let us know if it is through a crude buy-back.

When asked if it was conceivable, he responded, If it's not possible, what incentives is the government giving us to increase imports of petroleum goods and foster competition？

The supply of petroleum products and the government's opening of the market to investors and importers are the two most crucial factors for independent marketers.

LEADING MARKETERS RESPOND

Some Major Oil Marketers Association of Nigeria members also claimed that getting access to dollars remained difficult and that import permits already belonged to marketers.

Adetunji Oyebanji, the managing director of 11 Plc (previously Mobil Oil Nigeria Plc) and the immediate past chairman of MOMAN, stated, As an operator in the business, we embrace the idea that import licenses will be issued. In actuality, they never truly stopped issuing import licenses. People were unable to use them only because they lacked access to foreign exchange at the same rate as the NNPCL.