Emadeb invests $17m to import petrol, tasks govt on local refining
To ensure sustainable distribution of petrol across the country, Emadeb Energy Service Limited has taken delivery of 27 million litres at its depot.
The Chief Executive Officer, Emadeb, Mr. Debo Olujimi, while taking delivery of the product in Lagos, said that over $17m was invested in the consignment due to foreign exchange rate.
Emadeb, a depot owner, is one of the first marketers licensed 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 Limited (NNPCL) had been importing in the last eight years, as sole importer.
“Now that private companies had been granted licence 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 is understandable. The only way to address the ongoing challenges is for government to encourage local refining,” he said.
He said: “Having local refineries is the only way forward because foreign exchange determines the price of petrol.”
The Emadeb boss commended Tinubu for deregulating the downstream sector, adding that the company looks forward to a sustainable development in oil and gas sector,” he said.
The Chief Executive, Nigeria Midstream and Downstream Petroleum Regulatory (NMDPRA), Ahmed Farouk, commended Emadeb’s bold step toward importing petrol despite the fluctuation in foreign exchange rate.
Farouk, represented by the Executive Director, Corporation Services and Administration of NMDPRA, Sadiq Bashir, said that 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,” he said.
The Secretary General of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Olawale Afolabi, 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 that the most important part was that deregulation should be based on local production. He urged investors to invest in refining, so that Nigeria can have local refineries.
The Operations Controller of Independent Petroleum Marketers Association of Nigeria (IPMAN), Mike Osatuyi, 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 products has ended.
“The process will be more transparent than that of the NNPCL, where money is paid and products are not allocated for five months.
“I urge government to quicken the palliative for Nigerians, to have 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.
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