NMDPRA warns oil importers of off-spec products as market liberalizes
Sopuruchi Onwuka
The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has warned players in the domestic petroleum market to ensure that the products sold in the local market meet the specifications for vehicles used in the country.
Authority Chief Executive, Engr. Farouk Ahmed, who hosted the leaders of the different marketing groups to a meeting in Abuja called their attention to the requirements of the Petroleum Industry Act (PIA) regarding the full deregulation and importation of petrol.
The call came in preparation for full liberalization of the market to enable marketing companies explore cheaper and higher volumes of supply independent of the Nigerian National Petroleum Company (NNPC) Limited which had maintained state monopoly on the market since 2015 when the past President Muhammadu Buhari came into office.
However, the dominance of NNPC Limited in the market is about to end after new President Bola Tinubu withdrew the nation’s controversially increasing fuel subsidy controlled by the state oil company through sole supply of petrol to the market.
In the new market play emerging from the prevailing reforms, President Tinubu has approved the request from the marketing groups to allow full liberalization of the market to allow them resume importation of petrol in competition with NNPC.
One of the concerns regularly raised by the NNPC Limited is quality control but the marketers are always quick to point out that slips in quality has also happened under the prevailing supply monopoly run by the state oil company.
In a meeting with the private players in Abuja, Engr Ahmed emphasized the urgent need for product standardization to prevent importation of off-spec products into the country.
He told the marketers that NNPC Limited has agreed to reduce its petrol import volume to give room for other players in the industry. “Therefore any marketer licensed to import petroleum products must comply with set guidelines.”
The Oracle Today reports that three oil marketers have been scheduled to start importing petroleum products from next month.
Engr Ahmed revealed that the licensed oil marketers have reached agreement to enhance cooperation with security agencies to facilitate seamless supply and distribution of petroleum products nationwide.
