- Only 8 out of 94 licensed marketers imported fuel in 4 months – NMDPRA
The Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) has explained that the nation’s distribution of premium motor spirit (PMS) declined by 33.58% since the removal of fuel subsidy in May, 2023.
NMDPRA’s Chief Executive, Mr. Ahmed Farouk disclosed this while giving the keynote address at the 17th Oil Trading Logistics (OTL) Africa Downstream Energy Week, which commenced in Lagos, yesterday.
His words: “Our data reveal that after the announcement of deregulation, an average volume of 44.3 million liters per day was evacuated for distribution nationwide which implies a 33.58% reduction from the 66.7 million liters per day before the deregulation.”
“The supply of PMS and other Petroleum products have all maintained average land sufficiency levels above required thresholds. Our market intelligence regulatory role shall continue to be strengthened to ensure that all provisions of the PIA with respect to establishment of strong competitive environment are fully implemented.”
Meanwhile, he disclosed that while 94 wholesale suppliers were issued permits to import PMS into the country, only 8 suppliers delivered 8 cargoes of PMS totaling 251,000 MT within the period June – September 2023.
“This low performance was due to the challenge of forex illiquidity which has constrained the Oil Marketing Companies’ ability to import the product. But we are hopeful that the necessary efforts being taken by government to improve the stability of harmonized forex market will support the importation of PMS by more Oil Marketing Companies alongside NNPCL,” he stated.
The NMDPRA boss, however, assured that the Authority will continue to play its role in ensuring energy security for the country through the issuance of relevant regulatory approvals and guidelines.
According to him, the nation’s supply of petroleum products is expected to be further enhanced and secured by the coming onstream of Dangote Refinery and the rehabilitation of NNPCL refineries in the short to medium term.
In his welcome address, the Chairman, Advisory Board, OTL Africa Downstream Energy Week, Mr. Tunji Oyebanji expressed delight that this year’s event has a strong presence of the industry, even as he observed that the sector is in blended times of great flux, uncertainty and opportunity.
According to him, the ongoing conflicts in Eastern Europe and the Middle East continue to transmit volatility in the near term, while in the medium to long view, energy transition has challenged markets and forced operators to innovate.
“Closer home, policy and political changes remain a factor, with market players keen for clarity for their operations. These factors have combined to make OTL 2023 very important, as we look forward to robust engagements.”
“Over the years, the OTL Africa Downstream Week has set agenda for petroleum business, policy and competition. Driven by industry and government, OTL Africa Downstream has created a rare platform to come together as an industry to review operations, practices, procedures, policies and laws. This gathering gives us the opportunity to gain new insights, forge new partnerships, showcase brands, products and services and align operations to suit emerging industry dynamics.”
“In doing this over the last seventeen years, we have witnessed a quantum shift in the profile of operators in the downstream petroleum industry towards a place of increased relevance, visibility, organisation and strategic positioning. For this, we are very proud of our role and that of the supporting industry movement occasioned thereby,” he remarked.
The opening session was also graced by industry bigwigs, regulators, relevant legislative officials as well as political aides.
Goodwill messages were delivered by the Founder, Dangote Group, Aliko Dangote represented by the Group’s Chief of Corporate Strategy, Mr. Aliu Suleiman; Permanent Secretary, Federal Ministry of Petroleum Resources, Amb. Gabriel Aduda; Special Adviser to the President on Energy, Mrs. Olu Verheijen; Chairman, Senate Committee on Downstream Petroleum, Senator Emmanuel Olajide; among others.
