Refiners oppose petrol import licences to IPMAN, PETROAN
The Crude Oil Refinery Owners Association of Nigeria has warned the Federal Government to be cautious in granting import licences to petroleum traders for the importation of refined products.
CORAN’s comment came amid the controversy between the Dangote Petroleum Refinery and oil marketers.
Members of the Petroleum Products Retail Outlet Owners Association of Nigeria had said they would import Premium Motor Spirit (petrol) and sell the product cheaper than the N990/litre offered by the Dangote refinery, saying the association was awaiting the approval of the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The Independent Petroleum Marketers Association of Nigeria also said it was processing its import licence with the NMDPRA, saying it might be cheaper to import than to buy from Dangote refinery.
However, in an interview with our correspondent, the Publicity Secretary of CORAN, Eche Idoko, expressed concerns that the marketers were still bent on importing what he called substandard petrol into the country.
According to him, some international traders were bent on using the Nigerian market as a dumping ground for cheap petroleum products rejected in Europe.
“We are saying categorically that the NMDPRA should stop issuing import licences to people who are bringing in products that we have sufficiency in. Even if they are issuing, it should be based on the shortfall, not to say you are importing so that you can compete.
“We are not telling NMDPRA how to do its job. We are simply telling NMDPRA to protect the Nigerian domestic refining market. And whatever they have to do that they think is best, they should do it. But I do not think giving licences to European traders is good enough to defend the Nigerian market.
“The continuous issuance of import licences will only kill our industry. The government must try and protect the nascent refining industry that is emerging in Nigeria, and they can do that by desisting from giving import licences to these conglomerates that are just interested in making Nigeria a market for their substandard products,“ the CORAN spokesman stated.
Reminded that the Petroleum Industry Act does not stop the NMDPRA from issuing import licences, Idoko replied that the same PIA provided for what he termed backward integration.
“PIA says any product we have in-country refining capacity in, they should stop issuing licences,“ he said.
He noted that CORAN is deeply concerned that quite a number of international traders still have the licence to import fuel.
This, he said, is detrimental to the development of the refining segment of the petroleum sector, saying it will negatively impact the economic recovery and game plan of the country ultimately.
“There is nothing that can be better than building domestic refining capacity. The Nigerian government is not against local refining. People should be talking about building refineries and not importing products,” he explained.
Idoko said international traders are using local traders as an instrument to fight their trade war because they are interested in the Nigerian market, but don’t want to invest in the Nigerian market.
“We are not saying they cannot sell in Nigeria. What we are saying is that if you want to sell, come and build your refinery in Nigeria. Create value in Nigeria. Don’t come and dump your substandard products here because you can’t sell them in Europe again.
“You’re saying you’re bringing cheaper products, how cheap is this product as a matter of fact? You are bringing a lesser product and selling to us at N900 and you say it’s cheap. I’m not holding a brief for Dangote. As I keep saying, we have more than Dangote as a refinery.”
“By next year, we will have three more refineries producing PMS in Nigeria. Why are we not telling these guys to come and set up their refineries or buy into any of the refineries in Nigeria? Why are they not buying into other refineries? NNPC has three refineries that are up for lease. Why are they not coming to take them so they can supply?“ he emphasised.
Idoko said that stopping fuel importation is for the good of the nation.
“What we are saying is for the good of the people. We don’t want people to use us as a market without investing in the economy of Nigeria. We need foreign direct investment to grow the Nigerian economy.
“If the government wants to help Nigerians who have taken the bull by the horns to invest their hard-earned resources, then the government must protect them. World over, governments protect their local industries. Opening up the downstream to importation will continue to affect us. The only solution to energy cost is local refining,“ he stated.
