…By Joseph Benjamin for TDPel Media.
Independent Petroleum Marketers Association of Nigeria (IPMAN) Aims to Lower Fuel Prices
Marketers represented by the Independent Petroleum Marketers Association of Nigeria (IPMAN) have expressed their determination to compete with the Major Oil Marketers Association of Nigeria (MOMAN) and the Nigerian National Petroleum Company Limited (NNPCL) in the importation of petrol.
Their objective is to contribute to the reduction of fuel prices in the country.
Background: NNPCL’s Monopoly and Recent Changes
Prior to the removal of fuel subsidy, the Nigerian National Petroleum Company Limited (NNPCL) had the exclusive right to import fuel due to its access to dollars at a lower rate.
This situation discouraged other major importers from participating in the market.
However, with the recent unification of the exchange rate, independent oil marketers are now joining in the importation of petrol, with product shipments expected to arrive in Nigeria from the following week.
IPMAN’s Commitment to Price Reduction
Marketers affiliated with IPMAN have affirmed their willingness to do whatever it takes to participate in fuel importation in order to drive down prices in the country.
Their aim is to introduce competition in the market and bring about more affordable prices for consumers.
Fuel Consignment Details and NNPCL’s Imports
Clement Isong, a representative of MOMAN, provided additional information about the fuel consignment expected to reach Nigeria.
He stated that it is anticipated to arrive between the second and third week of July.
Isong also mentioned that NNPCL has already made significant fuel imports, with some vessels still en route to Nigeria.
This ensures that the country will not face shortages.
Marketers’ Forex Sourcing and Impact of Exchange Rate Unification
Isong explained that marketers acquire foreign exchange (forex) from various sources, including banks.
He emphasized that people obtain forex based on their own capabilities and resources, which may differ from one marketer to another.
The floating of the exchange rate has created a level playing field, as it eliminated the unfair advantage enjoyed by some individuals who had access to lower exchange rates in the past.
The unified exchange rate has instilled confidence in marketers, enabling them to engage in importation with greater assurance.
Conclusion:
IPMAN and its affiliated marketers are determined to challenge the dominance of major players in the petrol importation market.
With the unification of the exchange rate and the opportunity to import petrol, they aim to lower fuel prices and contribute to increased competition.
The arrival of fuel consignments and the availability of forex from various sources signal positive developments for the industry, ultimately benefiting consumers in Nigeria.
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