The Independent Petroleum Marketers Association of Nigeria has called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority to urgently review the fuel import licences issued for the third quarter of 2026, after selected importers set ex-depot petrol prices at ₦1,350 per litre, a rate significantly higher than the ₦1,075 per litre at which Dangote Refinery currently supplies the domestic market.

IPMAN's national publicity secretary, Chinedu Ukadike, said marketers were shocked that companies granted import licences were pegging their prices at around ₦1,350 per litre, a figure he said was far higher than what the Dangote Refinery charges, driving fuel price volatility, deepening pump-price inflation and placing unnecessary strain on the naira and Nigeria's foreign exchange reserves.

Petrol importers notified marketers across Nigeria on Thursday, July 16, that depot prices would rise from ₦1,230 to ₦1,350 per litre with effect from Friday, July 17, citing the rising cost of imported fuel cargoes. The adjustment means motorists could soon pay between ₦1,380 and ₦1,400 per litre at filling stations supplied by importers if the new depot price is fully passed through to the retail level.

The development follows the NMDPRA's issuance of a fresh round of fuel import licences for Q3 2026, covering the July to September period. According to a market intelligence report by Argus, petrol import approvals were granted to AA Rano, AYM Shafa, Bono, NIPCO and Pinnacle, while AA Rano, AYM Shafa, Bono, Matrix and Pinnacle received licences to import diesel.

Under the new allocation, AA Rano and Matrix Energy received approval to import 180,000 metric tonnes of petrol each, Pinnacle was allocated 150,000 metric tonnes and AYM Shafa 120,000 metric tonnes. Total petrol import allocations are expected to surpass 800,000 metric tonnes when the regulatory exercise is concluded.

Ukadike argued that landing costs for imported petroleum products were about 20% higher than what Dangote Refinery charges, making the import arrangement counterproductive. He linked the resulting pressure on the naira, which has risen to around ₦1,400 to the dollar, directly to the foreign exchange demand generated by these imports, and said the licences were not achieving the competition and price moderation objectives they were intended to deliver.

Market analysts attributed the higher depot price to rising international supply costs worsened by renewed US-Iran tensions, which have disrupted shipping activities around the Strait of Hormuz, a major global oil transit route. A market source expressed concern that the price increase undermines the objective of expanding import licences to encourage competition and moderate domestic fuel prices.

The contradiction at the heart of this episode is hard to miss. The NMDPRA issued Q3 import licences partly to prevent supply shortfalls and create competitive pressure on domestic refining. Instead, the importers who received those licences are pricing above the domestic refinery, consuming scarce foreign exchange and pushing pump prices higher at the precise moment the government had been hoping to sustain the downstream relief Nigerians felt briefly in June. The regulator now faces pressure to either explain the pricing basis on which the licences were granted or revisit terms that appear to have delivered the opposite of their stated purpose.

Stay Informed: Visit our website for Breaking News, Intelligence, and Insight.