NNPCL’s exclusive fuel import role: Kyari cites forex volatility challenges

Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), has attributed the company’s status as the sole importer of Premium Motor Spirit (PMS or petrol) in Nigeria to challenges posed by foreign exchange volatility. Kyari addressed the Senate Committee on Finance on Wednesday, shedding light on the dynamics influencing the fuel importation landscape.

Kyari explained that oil marketers found it challenging to navigate the price oscillation in the downstream sector, leading them to opt out of fuel importation. He highlighted the added responsibility and oscillations imposed by the Petroleum Industry Act as contributing factors to oil companies withdrawing from importation. Despite these challenges, Kyari assured the committee that NNPCL is effectively managing the market.

In a noteworthy incident from July, Emadeb Energy Services Limited imported 27 million litres of petrol into Nigeria but faced difficulties sustaining the effort. The adverse impact of forex volatility has led key industry players, including the Independent Petroleum Marketers Association of Nigeria, the Depot and Petroleum Marketers Association of Nigeria, and the Major Marketers Association of Nigeria, to reportedly boycott product importation.

Kyari’s explanation sheds light on the complexities and challenges faced by the industry, particularly regarding the impact of forex fluctuations on fuel importation dynamics.