By Patience Chat Moses
The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said that forex illiquidity has constrained Oil Marketing Companies’ ability to import the product.
The Agency also revealed that domestic consumption of Premium Motor Spirit (PMS) also called petrol in Nigeria has significantly dropped by 33.58 per cent from 66.7 million liters before the deregulation to 44.3 million liters per day.
The Authority Chief Executive, (ACE) NMDPRA, Farouk Ahmed, disclosed this in his keynote speech at the opening session of the Oil Trading and Logistics (OTL) Africa Week 2023, in Lagos on Monday.
He also emphasized that eight (8) wholesale petroleum product suppliers out of Ninety-Four (94) licenced oil marketers issued permits to import into the country and delivered eight cargoes of PMS totaling 251,000 MT (291,238,670.69 litres) between June and September 2023.
The ACE further emphasised that the drop in the number of licensed importers that delivered cargoes of petrol into the country was due to the challenge of forex illiquidity which has constrained the Oil Marketing Companies’ ability to import the product.
He expressed optimism that the necessary efforts being taken by the government to improve the stability of the harmonized forex market will support the importation of PMS by more Oil Marketing Companies alongside NNPCL.
Ahmed said that, “supply of Petroleum products is expected to be further enhanced and secured by the coming on stream of Dangote Refinery and the rehabilitation of NNPCL refineries in the short to medium term.
The NMDPRA Boss stated that a critical pillar for pursuing a structured energy transition in Nigeria is the adoption of gas as a transition fuel and the emplacement of strategic gas development frameworks through the Decade of Gas Program (DOGP).
He said, “The DOGP will ensure the accelerated growth of gas processing, storage, transportation, retail, and utilization 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.
Ahmed therefore emphasised that the full deregulation of the sector has further enhanced capacity to adopt Compressed Natural Gas (CNG) as a more sustainable and affordable alternative automotive fuel.