Large shipments of Premium Motor Spirit, often known as petrol, will be imported by major oil marketers and would arrive in Nigeria next week.
According to The PUNCH, this could potentially driving down the price of the commodity, major and independent dealers stated on Sunday.
Following the recent unification of the country’s exchange, which bolstered operators’ confidence, crude oil refiners were reportedly releasing refined petroleum goods on credit to Nigerian dealers.
This came as the Independent Petroleum Marketers Association of Nigeria told our correspondent that they would compete with the Major Oil Marketers Association of Nigeria and the Nigerian National Petroleum Company Limited for petrol imports, emphasising that this would drive down the price of PMS.
Prior to the removal of petrol subsidy by President Bola Tinubu, the National Nigerian Petroleum Corporation Limited (NNPCL) was the exclusive importer of the product. Other marketers had ceased importing petrol due to their limited access to the United States dollar.
Oil marketers claimed at the time that the NNPCL was gaining access to the dollar at a reduced cost, which was unjust and did not support PMS imports by other dealers.
However, with the recent unification of the exchange rate, oil marketers were forced to join in the importation of petrol and confirmed that the items would arrive in Nigeria the next week.
Asked to state when the products being imported by major marketers would start hitting Nigeria, the Executive Secretary, Major Oil Marketers Association of Nigeria, 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.
“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 from 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 the 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,” Isong stated.
In terms of how marketers obtained forex for imports, MOMAN authorities stated that dealers obtained foreign exchange from banks and other sources.
“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,” Isong stated.
