Strong indications have emerged that the Nigerian National Petroleum Company Limited (NNPCL) may soon lose its exclusive control over the importation of Premium Motor Spirit (PMS), commonly known as petrol, as oil marketers are poised to re-enter the market.
It has been reported that oil marketers, including the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the Major Marketers Association of Nigeria (MOMAN), made this decision following a meeting with high-ranking officials from the Nigerian Midstream and Downstream Petroleum Products Regulatory Agency (NMDPRA) earlier this week.
This development comes in the wake of numerous fuel depots running dry due to a scarcity of foreign exchange required for petrol imports.
Last week, Mele Kyari, the Group Chief Executive Officer of NNPCL, confirmed that the company was the sole importer of fuel because other marketers lacked access to foreign exchange for importation.
With the current exchange rate exceeding N1,000 per dollar and international crude oil prices hovering around $92 per barrel, the landing cost of a liter of petrol had risen to approximately N720 per liter as of last week.
However, it has been disclosed that the federal government is actively working on a series of short-term measures to enable oil marketers to access foreign exchange at a rate that won't significantly disrupt fuel prices. Additionally, the government is undertaking long-term initiatives involving fiscal and monetary reforms aimed at strengthening the Naira.
According to a source privy to the oil marketers' meeting, specific details of the government's short-term measures will remain confidential for strategic reasons. Nonetheless, it is clear that the government seeks to avoid a scenario where NNPCL is the sole importer of petrol, in line with its deregulation policy.
The speculative exchange rate of N1000 to a dollar is acknowledged as not representing the true value of the Naira. A comprehensive approach is being implemented to stabilize the Naira, ultimately allowing oil marketers to access foreign currency at a sustainable and profitable rate for fuel importation, ensuring a seamless supply and distribution of fuel across the country. The goal is to avoid a situation where NNPCL is the exclusive importer of fuel in a deregulated market.
Nigerian National Petroleum Company Limited (NNPCL), Premium Motor Spirit (PMS), Petrol, Oil marketers, Importation, Monopoly, Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Major Marketers Association of Nigeria (MOMAN), Nigerian Midstream and Downstream Petroleum Products Regulatory Agency (NMDPRA), Fuel depots, Foreign exchange, Mele Kyari, Exchange rate, Crude oil price, Landing cost, Deregulation policy, Fiscal and monetary re-engineering, Naira, Short-term measures, Long-term measures, Strategic considerations, Government actions, Fuel supply, Market deregulation, Petrol importation.
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