IMPORTATION OF NEW GASOLINE IS HALTED BY A LACK OF FOREX.

The prospect of importing new gasoline may have been crushed, as research showed that oil marketers who have been granted permission to import fuel are currently experiencing trouble getting foreign exchange.

Three of the downstream enterprises that were cited had not yet obtained foreign currency to pay for goods, according to sources familiar with the situation.

Six downstream companies have received importing permits from the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

Only three of them would start importing this month, though: Eternal Plc, Emadeb Energy Services Limited, and Asharami Energy.

However, sources indicated that despite having licenses, the enterprises would not be able to import fuels because of high exchange rates and a lack of foreign currency.

That's not accurate. Nowadays, due to foreign exchange, buying is more profitable than importing. When questioned if they had started importing gasoline, one of the sources told The PUNCH that it was approximately N775/$ as of the most recent check.

A need for clarity exists. We need to know if we're importing or if we're just still waiting in line behind the NNPCL that is. However, the NMDPRA wants us to import. However, FX—the proverbial elephant in the room—must be addressed. Even if they're working to converge it, it would cost around $12 million to import 15KT (kilotonnes). We were taking a very long time to purchase merely $3–4 million for the base oil that we are transporting. Not even mentioning importing PMS. Right now, we obtain a PFI (Pro Forma Invoice) from PPMC and pay them. Therefore, we are unable to import till FX is available.

The three oil marketers made an announcement on June 15 that they will begin importing petroleum products this month. According to Farouk Ahmed, the Chief Executive Officer of NMDPRA, the oil marketers have agreed to improve their cooperation with security organizations in order to make the supply and distribution of petroleum products more seamless.

Three oil marketers have already announced that they will begin bringing in petroleum goods in July of this year, according to Ahmed.

Later, Ahmed claimed that there were now six firms.

Six businesses have indicated that they plan to import petroleum in July. Of course, everyone else is free to import in December, November, or whenever, but the NMDPRA CEO said that as of this morning, there were six parties who had expressed interest in bringing in fuel in July.

Asharami, Emadeb, and Eterna did not comment on the development.

Additionally, our correspondent learned that foreign oil refineries like Glencore, Vitol, Moko, and others have begun to supply products to Nigerian marketers on credit as a result of the nation's declining gasoline consumption.

“Low patronage has forced companies like Glencore, Vitol, and Moko to start chasing us and offering to sell on credit for the first time because they know the game is changing,” said the executive. There are several changes. They did not extend us financing when the price was approximately $2.7 million. Why now, he questioned, has the price increased to $9.3 million？

No importer wants to take the chance of losing money because of the high exchange rate, the source continued.