Petrol price row deepens as IPMAN accuses importers of price fixing

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has accused major fuel importers, including AA Rano and Matrix Energy, of allegedly fixing the price of imported Premium Motor Spirit (PMS), popularly known as petrol, at about N1,350 per litre, a level it says is significantly higher than the price offered by Dangote Petroleum Refinery.

The allegation was made by IPMAN’s National Publicity Secretary, Chinedu Ukadike, who argued that the Federal Government’s policy of issuing import licences to major marketers has failed to achieve its objective of promoting price competition and moderating domestic fuel prices.

Speaking on the development, Ukadike expressed disappointment that the import licences, which were intended to serve as a market-balancing mechanism, have instead coincided with higher prices for imported petrol.

He said independent marketers were surprised that companies granted licences to import petroleum products were allegedly selling at prices far above those offered by the Dangote Refinery.

“We were shocked that the licences given to AA Rano, Matrix and others to import petroleum products are being used to peg prices at about N1,350 per litre, which is far higher than what Dangote Refinery is selling to us,” he said.

Ukadike urged the Federal Government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to review the implementation of the import licensing regime and ensure greater transparency in petroleum pricing.

According to him, the government introduced import licences to encourage competition and prevent excessive domestic pricing, but the policy has yet to produce the expected benefits for marketers and consumers.

He also raised concerns over the continued sale of petroleum products in United States dollars and called for a comprehensive review of pricing mechanisms in the downstream sector.

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“The independent marketers have looked at the issues surrounding price volatility, import licences and dollar-denominated transactions. We urge the Federal Government, through the NMDPRA, to address these issues transparently,” Ukadike said.

The IPMAN spokesman further questioned the competitiveness of imported fuel, arguing that imported products are not only more expensive but also raise concerns over quality.

He maintained that international PLATTS pricing for imported petroleum products remains about 20 per cent higher than the prices offered by Dangote Petroleum Refinery, making imports less attractive to marketers.

Ukadike warned that increased fuel imports are placing additional pressure on Nigeria’s foreign exchange market, noting that the exchange rate has continued to weaken towards the N1,400 per dollar mark.

He argued that importing petroleum products from regional supply hubs such as Lomé at higher prices unnecessarily increases demand for foreign exchange and places further strain on the naira.

The association reiterated its support for continued crude oil sales to domestic refiners in naira, describing the arrangement as a key strategy for sustaining lower fuel prices and reducing Nigeria’s dependence on imported refined products.

Ukadike urged the Federal Government to continue engaging Dangote Petroleum Refinery and other stakeholders to ensure the naira-for-crude initiative remains operational.

According to him, strengthening domestic refining capacity would be more beneficial to Nigeria’s energy security than relying heavily on imported fuel.

He also cautioned against what he described as the indiscriminate issuance of import licences, warning that the practice could ultimately lead to higher pump prices for consumers.

The meeting followed a directive by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, urging marketers to reduce pump prices in line with declining global crude oil prices.

Officials of the NMDPRA also participated in the discussions, which focused on pricing transparency, competition and ensuring that domestic petrol prices reflect prevailing market conditions.

Energy analysts said the allegations highlight the growing debate over pricing dynamics in Nigeria’s deregulated downstream petroleum market.

According to industry experts, while import competition is expected to moderate prices, sustained disparities between imported fuel and domestically refined products underscore the need for greater pricing transparency and effective regulatory oversight.

They added that expanding local refining capacity and maintaining stable crude supply to domestic refineries could help reduce Nigeria’s dependence on fuel imports, ease pressure on foreign exchange reserves and promote more competitive pricing for consumers.