Deregulation: Oil marketers begin fuel importation — NMDPRA

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Deregulation: Oil marketers begin fuel importation — NMDPRA

THE Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, yesterday, said oil marketers have started importing petrol into the nation.

Until now, the importation of the product was solely done by the NNPC Limited.

But speaking at the stakeholders’ engagement in Lagos, Monday, the chief executive officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, Farouk Ahmed, said of the 56 oil marketing companies that applied for licences, 10 demonstrated commitment while three have imported fuel into the nation.

Ahmed listed the three companies currently importing the product to include, A.Y. Ashafa, Prudent and Emadeb, adding that others would import in the coming weeks.

However, the NMDPRA boss expressed the commitment of the federal government towards the deregulation of the sector in line with the Petroleum Industry Act, PIA.

He said some challenges that previously affected the seamless importation of the product were being addressed.

Recently, the oil marketers urged the federal government to tackle insecurity and suspend the 7.5 per cent Value Added Tax, VAT on diesel as part of measures needed to impact operations in the downstream sector.

The oil markers also urged the government to put in place measures capable of addressing the rising cost of food items and transportation in the nation in order to impact the welfare of citizens affected by the recent deregulation of the sector.

The Chairman, Major Oil Marketers Association of Nigeria, MOMAN, Olumide Adeosun, who applauded the government for inaugurating the committee on fiscal policy and tax reforms by President Bola Tinubu, said the measures are needed as citizens currently pass through very difficult times.

In a statement obtained by Vanguard, MOMAN members had confirmed the capacity of its members to import petrol into the country; especially since their licenses are renewed on a quarterly basis.

He said: “The reality is that many of us have importation licenses that have never lapsed. We renew them on a quarterly basis via the NMDPRA portal. Some of us are also importing diesel, so we need these licenses.

“The licenses cover multiple products such as ATK, PMS, and AGO. The regulator will tell you that we need them even when we are receiving products from the Nigerian National Petroleum Company Limited (NNPCL), particularly on the high sea.”