The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says that companies meeting its requirements can import fuel with the petrol subsidy removal.

The NMDPRA said petrol importers must meet regulations stipulated by the Petroleum Industry Act (PIA 2021).

NMDPRA chief executive stated this on Wednesday in Abuja while briefing the journalists, shortly after a meeting with the oil marketing companies on expectations on post-petrol deregulation.

The engagement had in attendance officials of the Major Oil Marketers Association of Nigeria (MOMAN), Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN)and Nigerian National Petroleum Company Limited (NNPC Ltd.), among others.

Mr Ahmed said the authority was looking at the flexibility and ease of doing business, enabling importers to import easily, stating that the meeting became necessary regarding the current situation in the downstream sector following President Bola Tinubu’s pronouncement by petrol subsidy removal.

“The engagement aims at aligning and also rolling out policies in terms of requirements for the quotation of PMS. We thought it is necessary to fashion out areas of concern and promote clarity regarding the way forward,” Mr Ahmed explained. “There will be transparency while conducting the business of the importation of PMS both by the major marketing companies, MOMAN, and the DAPPMAN, as well as the NNPC Limited.”

The NNPC was the sole petrol importer in the past, but with the removal of the fuel subsidy, “it is necessary to open the way to other interested parties that want to import so long as they meet the requirements,” he said.

He added that the NNPC Ltd would draw down on its importation from being the sole importer to bringing in about 30 to 40 per cent maximum in line with the provision of the Federal Competition and Consumer Protection Commission (FCCPC) regulation.

“The regulation says that nobody should exceed 40 per cent of the market share in terms of their own regulations, and we want to abide by that,” Mr Ahmed noted. “We also deliberated on some concerns in terms of provision of foreign exchange for them to import. We also discuss the issue of quality of product importation and the source locations.”

Mr Ahmed said petrol prices would not be the same nationwide because of local transportation and logistics.

“For example, the price in Lagos, being the main receiving location for imports, will not be the same with the prices in Ibadan, Sokoto or Borno states because the local transportation costs will be added to the price,” said the NMDPRA chief. “We also agreed finally that we should have a small team to look at some critical aspect of the PIA that warrants only those with refinery or those with international trade experience are allowed to import.”

(NAN)