Emadeb Energy Service Limited, a depot owner and one of the marketers licensed to import fuel has taken delivery of 27 million litres in Lagos.
The Chief Executive Officer of the company, Mr Debo Olujimi, who disclosed this during the inaugural ceremony at its Ijegun Satellite Depot, on Friday, put the cost at over 17 million dollars, due to the foreign exchange rate at the international
Olujimi, who noted that the product was imported to support efforts currently made by the NNPC Limited, said: “Now that private companies had been granted licences to import petrol, this is actually the way forward.
“It is a known fact that the increase in the price of petrol has been a huge pressure on Nigerians which we all understand. The only way to address the ongoing challenges is for government to encourage local refining.
“Having local refineries is the only way forward because foreign exchange determines the price of petrol. As of yesterday, the dollar was at N834. Government should assist marketers to access dollars on a single CBN E&l window pending when local refineries will be able to work. This will be sustainable so that all marketing companies can pledge on how to import petrol into the country.”
The Emadeb boss commended President Tinubu for deregulating the downstream sector, adding that the company looks forward to sustainable development in the oil and gas sector.
He said: “NNPCL has been the sole supplier and we decided to import to cushion supply. We are a responsible company and we know what Nigerians are passing through. So, we will not inflate prices or engage in profiteering of the product because we are God-fearing people.
“We urge the government to help to find a window where forex is resolved to have a fixed market rate for importation of fuel.”
Similarly, the Authority Chief Executive, Nigeria Midstream and Downstream Petroleum Regulatory (NMDPRA), Mr Ahmed Farouk, commended Emadeb for the bold step towards importing petrol despite the fluctuation in foreign exchange rate.
Farouk, who was represented by Mr Sadiq Bashir, Executive Director, Corporation Services and Administration of NMDPRA, said: “We, at NMDPRA, will also ensure quality supply of petrol and quality in the product. Prices change and market forces also determine the market “Petroleum price is denominated in dollars and the product is bought in foreign exchange. The price is benchmarked with the international price.”
The Secretary General of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Mr Olawale Afolabi, said: “The huge price increase in petrol is affecting Nigerians; the international market cannot be determined by the government.”
The Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr Mike Osatuyi, also said: “We laud the courage, in spite of all the prevailing challenges. The era of the monopoly of products has done. The process will be more transparent than that of the NNPCL, where money is paid and the product is not allocated for five months.”
However, the Managing Director, Rainoil Limited, Mr Gabriel Ogbechie, added, “Deregulation is working. But there are so many challenges in the downstream sector including, forex instability, which moved from N835 to a dollar. There is huge fluctuation in the system but deregulation is the best way to go. The process will be competitive under deregulation, if the prices drop, petrol will also drop.”
