Oil marketers who have been licenced to import fuel are currently experiencing issues getting cash and thus, the prospect of new petrol importation into the country may have been crushed.
According to The Punch, sources reported that three of the enraged downstream enterprises were yet to source foreign exchange to purchase products.
Even though six downstream companies have recently received importation licences from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, only three of them, Eternal Plc, Emadeb Energy Services Limited, and Asharami Energy, would begin importing this month.
“According to a source, it now pays to buy rather than import because despite having licences, the companies would be unable to import fuel due to high exchange rates and a lack of cash.
“Even though they are attempting to unify it, bringing in 15KT requires approximately $12 million. I’ve been attempting to get $3-$4 million for the base oil that we are bringing, and it was taking us forever.”
The sources also lamented about their ordeal when it comes to importing PMS. “Currently, we obtain a Pro Forma Invoice from PPMC and pay them. So, till FX becomes accessible, we cannot import,”
Recall that NMDPRA announced on June 15 that the three oil marketers would begin importing petroleum products this month.
Chief Executive Officer of NMDPRA, Farouk Ahmed, stated that about six oil marketers struck an agreement to strengthen collaboration with security agencies in order to facilitate the seamless supply and distribution of petroleum products.
As of the time this report was filed, Emadeb, Eterna, and Asharami did not respond to inquiries on the situation.
However, it was gathered that due to the decline in petrol consumption in the country, foreign oil refineries such as Glencore, Vitol, Moko, and others have begun supplying products on loan to Nigerian marketers.
“Low patronage has forced Glencore, Vitol, and Moko to start chasing us and offering to sell on credit for the first time because they know the game is changing.”
According to the source, no importer wants to incur the risk of running at a loss due to a high exchange rate.
