Marketers Reveal Why They Can’t Break NNPCL Monopoly On Petrol Import

Marketers Reveal Why They Can’t Break NNPCL Monopoly On Petrol Import

The inability of independent marketers to access foreign exchange (forex) and navigate price control regulations has led them to abandon their initial attempts at importing petrol.

As a result, the Nigerian National Petroleum Company Limited (NNPCL) has emerged as the sole importer and source of petrol nationwide.

Independent Petroleum Marketers Association of Nigeria (IPMAN) members have expressed frustration over the forex situation and the pricing regime, which they say hinders their full participation in the downstream oil sector, contrary to the ideals of full deregulation.

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Three major marketers had initially ventured into private petrol importation in July after the removal of petrol subsidies and the adoption of a free-market economy for the downstream sector by the government.

However, they faced challenges with sourcing foreign exchange from banks and difficulties in purchasing petrol from NNPCL depots.

According to Abubakar Maigandi, IPMAN’s National Vice President, NNPCL has reduced the allocation of petrol to independent marketers.

The NIPCO depot has also raised the ex-depot price to N585 per litre, compared to the previous rate of N557 per litre.

Overall, the forex shortage and price control measures have made it difficult for independent marketers to import and distribute petrol, leaving NNPCL as the primary importer of the product.