Lagos, July 19, 2023: Emadeb Energy Service Ltd., a depot owner and one of the marketers licensed to import fuel, has taken delivery of 27 million litres at its depot.
Its Chief Executive Officer, Mr Debo Olujimi, disclosed this during the inaugural ceremony at its Ijegun Satellite Depot on Wednesday in Lagos.
According to him, this will boost product distribution in the country.
Olujimi said that the 27 million litre cargo cost over 17 million dollars due to foreign exchange rate at the international market.
Emadeb is one of the first marketers to import petrol after subsidy removal by President Bola Tinubu on May 29.
Olujimi said that 27 million little of petrol was imported to support what the Nigerian National Petroleum Company Ltd. (NNPCL) had been importing in the last eight years, as sole importer.
“Now that private companies had been granted licences to import petrol, this is actually the way forward.
“It is a known fact that the increase in price of petrol has been a huge pressure on Nigerians which we all understand.
“The only way to address the ongoing challenges is for government to encourage local refining,” he said.
The marketer said: “Having local refineries is the only way forward because foreign exchange determines the price of petrol.
“As at yesterday, dollar was at N834.
“Government should assist marketers to access dollar on a single CBN E&l window pending when local refineries will be able to work.
“This will be sustainable, so that all marketing companies can pledge on how to import petrol into the country,” he added.
The Emadeb boss commended President Tinubu for deregulating the downstream sector, adding that the company looks forward to a sustainable development in oil and gas sector.
“NNPCL has been the sole supplier and we decided to import to cushion supply.
“We are responsible company and we know what Nigerians are passing through. So, we will not inflate price or engage in profiteering of the product because we are God fearing people.
“We urge government to help to find a window where forex is resolved to have a fixed market rate for importation of fuel,” he said.
Mr Ahmed Farouk, the Authority Chief Executive, Nigeria Midstream and Downstream Petroleum Regulatory (NMDPRA), commended Emadeb’s bold step toward importing petrol despite the fluctuation in foreign exchange rate.
Farouk, who was represented by Mr Sadiq Bashir, Executive Director, Corporation Services and Administration of NMDPRA, said the company had made significant progress geared toward effective product distribution.
He said that deregulation was not about pricing but opening of the market.
“We, at NMDPRA, will also ensure quality supply of petrol and quality in product.
“Prices change and market forces also determine the market.
“Petroleum price is denominated in dollars and the product is bought in foreign exchange.
“The price are benchmarked with the international price,” he said.
Mr Olawale Afolabi, the Secretary General of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), said that deregulation had helped in opening the market.
Afolabi said that the significance was that Emadeb had taken the bull by the horn to bring in product against NNPCL, who used to be the sole importer.
He said the most important part was that deregulation should be based on local production.
“The huge price increase in petrol is affecting Nigerians, the international market cannot be determined by the government.
He urged investors to come and invest in refining, so that Nigeria can have local refineries.
Mr Mike Osatuyi, the Operations Controller of Independent Petroleum Marketers Association of Nigeria (IPMAN), commended Emadeb for commencing importation under post subsidy removal regime.
“We laud the courage, in spite of all the prevailing challenges. The era of monopoly of product has done.
“The process will be more transparent than that of the NNPCL, where money are paid and product are not allocated for five months.
“I urge government to quicken the palliative for Nigerians, to have a relief.
“Government should use money saved from subsidy and forex to do something reasonable for Nigerians.
“Price will be competitive because the cheapest rate as at yesterday was N565,” he added.
Mr Gabriel Ogbechie, Managing Director, Rainoil Ltd., lauded Emadeb for importing product after the subsidy removal,
He said that the company had set the pace in importation process.
“Deregulation is workable and way to go.
“There are so many challenges in the downstream sector including forex instability, which moved to N835 to dollar.
“There are huge fluctuation in the system but deregulation is the best way to go.
“The process will be competitive under deregulation, if the prices drop, petrol will also dropped,” he said.
The marketer said that floating exchange rate was right thing to do because the huge disparities between official rate and black market rates was not sustainable.
He urged government to provide liquidity to the market to ease importation.
“If government do not provide liquidity, this fluctuation will continue,” he added.
