The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has indicated that the shortage of foreign exchange (forex) has limited the capacity of Oil Marketing Companies to import petroleum products…CONTINUE READING....KINDLY READ THE FULL STORY HERE▶
The agency has also reported a significant decline in the daily domestic consumption of Premium Motor Spirit (PMS), commonly known as petrol, in Nigeria. The consumption has dropped by 33.58 percent, decreasing from 66.7 million liters before deregulation to 44.3 million liters per day.
During the opening session of the Oil Trading and Logistics (OTL) Africa Week 2023 in Lagos, NMDPRA’s Chief Executive, Farouk Ahmed, shared these insights in his keynote address.
He highlighted that out of the 94 licensed oil marketers, only eight wholesale petroleum product suppliers were granted permits to import products into the country. These eight suppliers successfully delivered eight shipments of PMS, totaling 251,000 metric tons (approximately 291,238,670.69 liters) between June and September 2023.
The ACE further stressed that the reduction in the number of licensed importers delivering petrol cargoes was primarily due to the challenge of forex illiquidity, which has hindered the ability of Oil Marketing Companies to import the product.
He expressed optimism that the government’s ongoing efforts to enhance the stability of the unified forex market will facilitate increased imports of PMS by more Oil Marketing Companies, including NNPCL.
