FX Shortage Hits Marketers: Significant Dip in Petrol Imports
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News - October 24, 2023

FX Shortage Hits Marketers: Significant Dip in Petrol Imports

“Petrol imports into the country have seen a decline due to the illiquidity of Forex,” states the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

This challenging financial situation has also restricted the capability of oil Marketing companies to bring in the commodity.

Speaking during the opening session of the Oil Trading and Logistics (OTL) Africa Week 2023 in Lagos, Farouk Ahmed, Chief Executive, of the NMDPRA, said eight (8) wholesale petroleum product suppliers out of 94 licensed oil marketers were granted import permissions and supplied eight cargoes of PMS totalling 251,000 MT (291,238,670.69 litres) between June and September 2023.

Farouk also registered his belief that the government’s efforts to restore the stability of the harmonised FX market will assist in the importation of Premium Motor Spirit (PMS), also known as petrol, by other oil marketing companies in addition to the state-owned oil companies.

He said, “Supply of petroleum products is expected to be further enhanced and secured by the coming onstream of Dangote Refinery and the rehabilitation of Nigerian National Petroleum Company (NNPC) Limited refineries in the short to medium term.

NMDPRA reacts to FG gas transition plan

The NMDPRA boss said that the acceptance of gas as a transition fuel and the establishment of strategic gas development frameworks under the Decade of Gas Program (DOGP) are important pillars for pursuing an organised energy transition in Nigeria.

In his words, “The DOGP will ensure the accelerated growth of gas processing, storage, transportation, retail, and utilisation in Nigeria within the decade. The program has optimal industry inclusiveness and is making steady progress in the implementation of all its strategic objectives, initiatives, and projects.

“President Bola Ahmed Tinubu has launched the Presidential initiative on CNG (PiCNG), with the focus of providing immediate and long-lasting infrastructure for modern mass transit systems.”

He also hinted that the PiCNG has already commenced work and is adequately supported with all necessary tools including required funding to meet its aspirations.

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