NMDPRA to issue licenses for marketers to import petrol as NNPCL reclines

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed that it’s set to start out issuing licenses to grease advertising corporations which are prepared to start out importing Premium Motor Spirit (PMS) put up deregulation.

Farouk Ahmed, Authority Chief Government Officer, NMDPRA mentioned this whereas chatting with journalists on Wednesday in Abuja after an engagement with oil advertising corporations on put up PMS deregulation expectations.

“The market is open already we’ve got to observe the rules and we’ve got rolled out insurance policies which are consumer pleasant and a few of them have began placing their obligations in place,” he mentioned.

He mentioned that since Nigerian Nationwide Petroleum Firm Restricted (NNPCL) is slowing down its importation there may be must have individuals who will fill the hole particularly in the event that they meet the necessities in keep away from gasoline scarcity within the nation.

“We agree that NNPCL will proceed to import till we’ve got essential mass of importers; About two or three advertising corporations have reached out to us and booked cargos coming in July and we’re fast-tracking the method of issuing their license to import,” he mentioned.

Learn additionally: REA, Oando signal MoU to spice up renewable vitality entry in Nigeria

Ahmed mentioned NNPCL will drop down their importation to 30 or 40 p.c most following the provisions of the FCCPC that no person ought to exceed 40 p.c of the market share.

“We’re additionally interacting with the NNPCL to make sure that the market is nicely provided and there’s no cap in importation; NNPCL can also be monitoring what different replacements they’ve,” he mentioned.

Talking on FX trade fee, Ahmed mentioned because the market is deregulated there isn’t a must subsidize FX for imports, including that NNPCL arrived on the present worth was utilizing an trade fee of N650 to a greenback.

He reiterated that there isn’t a worth capping anymore because the market is now deregulated, therefore the value will likely be reflective of the market, nevertheless if the the Naira improves the value will change.

He additionally mentioned that because of points round logistics and distribution price, the value of pms won’t be the identical throughout the nation.