Oil marketers are increasingly worried they can’t import petrol due to the dollar shortage in the country. Despite the deregulation of the downstream sector, concerns have been raised about the potential comeback of the country’s persistent fuel scarcity.
No fewer 86 oil trading companies may have dumped their various permits to import Premium Motor Spirit(PMS), popularly called petrol over the country’s worsening foreign exchange crisis.
The development may worsen the recent fuel shortages leading to queues across the country, especially in Lagos and Abuja.
Authority Chief Executive, Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Farouk Ahmed, disclosed this in his keynote speech at Oil Trading Logistics(OTL) Africa Week 2023 which began in Lagos, yesterday with the theme ‘’Energy,Synergy and New Beginnings’’.
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Ahmed said out of the Ninety-Four (94) wholesale suppliers that were issued permits to import PMS into the country, only eight suppliers delivered 8 cargoes of PMS totaling 251,000 MT within the period June – September 2023.
According to him, the low import performance was due to the challenge of forex illiquidity which has constrained the oil marketing companies’ ability to import the product.
‘‘But we are hopeful that the necessary efforts being taken by government to improve the stability of harmonized forex market will support the importation of PMS by more oil marketing companies alongside NNPCL,’’.
He assured that NMDPRA will continue to play its roles of ensuring energy security for the country, through the issuance of relevant regulatory approvals and guidelines.
Ahmed added further that the supply of Petroleum products is expected to be further enhanced and secured by the coming onstream of Dangote Refinery and the rehabilitation of NNPCL refineries in the short to medium term.
When fully operational, he xplained that The NSS will guarantee availability of petroleum products nationwide and help in stabilising market prizes, especially during supply chain disruptions.
Nigeria, as a significant player in the global energy landscape, faces the challenge of balancing its hydrocarbon-based economy with the need to transition towards cleaner and more sustainable energy sources.
While much attention has been focused on the upstream sector (exploration and production) in discussions about energy transition, the downstream sector, which involves refining, distribution, and marketing of petroleum products, plays a crucial role in this transition,’’
