The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has eased petrol import restrictions by granting a new batch of licences to local marketers.
According to a report on Tuesday by S&P Global, the authority issued the licences in response to supply disruptions caused by the Middle East crisis.
An official at the downstream regulator said the licences were issued to bridge the gap triggered by a shortfall in petrol supply.
“The NMDPRA did not issue import licenses for gasoline in February on the strength of improved domestic supply then. But the Middle East crisis came and we have had a shortfall. So to bridge the gap, import licenses were issued,” the NMDPRA official said.
According to the report, six oil marketers were granted import licences to import a total of 180,000 metric tonnes (MT) of petrol.
On March 11, the NMDPRA said it suspended the issuance of new import licences, saying local production was sufficient to meet domestic supply needs.
On Monday, petrol prices in Nigeria rose further to record levels amid the ongoing geopolitical tensions in the Middle East.
On the same day, oil price plunged to $96 a barrel after Donald Trump, United States (US) president, said he would postpone any military strikes against Iranian power plants and energy infrastructure for five days.
SOURCE: TheCable
