Subsidy Removal: Independent Marketers To Compete With NNPCL On Fuel Importation 

Marketers under the aegis of the Independent Petroleum Marketers Association of Nigeria (IPMAN) have vowed to compete with the Major Oil Marketers Association of Nigeria (MOMAN) and the Nigerian National Petroleum Company Limited (NNPCL) on the importation of petrol.

Naija News gathered that independent oil marketers have vowed to compete with the majors in the market in order to bring down the price of the product in the country.

Recall that hitherto the removal of fuel subsidy, NNPCL was the sole importer of fuel because they had access to dollars at a lower rate.

It was this situation that discouraged other major importers from importing the product.

However, with the recent unification of the exchange rate, oil marketers had to join in the importation of petrol and confirmed that the products should be arriving in Nigeria from next week.

Speaking with The Punch, marketers under IPMAN said they would give all it takes to join in the importation of fuel in other to crash prices of the product in the country.

Giving further details about the consignment of fuel expected to hit the shores of Nigeria this MOMAN, Clement Isong, replied, “I will simply say between the second and third week of July.”

Isong, however, explained that the NNPCL had made a lot of fuel imports, as some of its vessels were still on the way to Nigeria.

He explained that “Let me say that NNPCL has imported significantly to prevent the country from running dry. The vessels NNPCL imported are offshore Nigeria, so they have a significant volume, therefore in all circumstances, the country will not run dry.

“So the options everybody has is that they can buy from NNPCL ex-depots or they can go and import from Europe or other places. The assignment is that you compare your price if you buy from NNPCL or import from Europe.

“More or less, the taste of the pudding is in the eating. So do your calculation as best as you can. But you will only know the full impact when the product is in your tank. If it goes right, it is then that you will know how competitive your price is. The more you do it, the more efficient you become.”

Further speaking on how marketers are sourcing forex, the MOMAN boss said they are getting it from banks and other sources.

Isong added that “People access forex from different places. Just that it is easier for some people than others. Some people have strong banks, while others have other means of accessing forex. So everyone plays on their strength and ability to access forex.

“And it must be stated that the floating of the exchange rate is a plus, for instance, some people can go and get credits from their suppliers, while others have LCs (Letters of Credits), means of borrowing, etc.

“But the most important thing is that there is a unified exchange rate and that makes people more confident in going to import. There is no unfair advantage, where in the past some persons have access to low exchange rates.”