Emadeb Energy Service Ltd. has imported and taken delivery of 27 million litres at its depot. This is to boost and ensure sustainability in the importation and distribution in the downstream sector of the oil and gas industry, following the removal of subsidy on Premium Motors Spirit, (PMS) otherwise called petrol or fuel.
Emadeb is a depot owner and one of the first marketers that imported petrol into Nigeria after some of them were licensed for petrol importation following the removal of subsidy on petrol by President Bola Tinubu.
Chief Executive Officer, Emadeb Energy Service Ltd. Mr Debo Olujimi, spoke during the inaugural ceremony at its Ijegun Satellite Depot in Lagos, according to a statement on Thursday.
The inauguration of the first petrol cargo by Emedab Energy witnessed stakeholders from the oil and gas industry, bankers and investors.
Olujimi stated that the 27 million litre cargo cost the company over $17 million due to the foreign exchange rate at the international market.
According to him, the 27 million little of petrol was imported to support the petrol importation and distribution by the Nigerian National Petroleum Company Ltd. (NNPCL) for many years.
Olujimi said, “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 the 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.”
“Having local refineries is the only way forward because foreign exchange determines the price of petrol. As of Tuesday, the 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.”
While lauding President Tinubu for deregulating the downstream sector, he assured that his company was committed to sustainable development in the oil and gas sector.
Olujimi said, “NNPCL has been the sole supplier and we decided to import to cushion supply. We are a responsible company and we know what Nigerians are passing through. So, we will not inflate prices or engage in profiteering of the product because we are God-fearing people.
“We urge the government to help to find a window where forex is resolved to have a fixed market rate for importation of fuel,” he said.
The Chief Executive, Nigeria Midstream and Downstream Petroleum Regulatory (NMDPRA), Engineer Ahmed Farouk, commended Emadeb’s bold step toward importing petrol into Nigeria despite the fluctuation in foreign exchange rate.
Farouk, represented by Mr Sadiq Bashir, Executive Director, Corporation Services and Administration of NMDPRA, said the company had made significant progress towards effective product distribution.
He said, “We, at NMDPRA, will also ensure quality supply of petrol and quality in the 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 is benchmarked with the international price,” he said.
The Secretary General of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Mr Olawale Afolabi, stated that deregulation had helped in opening the market.
According to him, the significance was that Emadeb had taken the bull by the horn to bring in the product against NNPCL, who used to be the sole importer.
He opined 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.
The National Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr Mike Osatuyi, lauded Emadeb for commencing importation under the post-subsidy removal regime.
He said, “We laud the courage, in spite of all the prevailing challenges. The era of the monopoly of products has done.
“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 the government to quicken the palliative for Nigerians, to have a relief. Government should use the money saved from subsidies and forex to do something reasonable for Nigerians.
“Price will be competitive because the cheapest rate as at yesterday was N565.”
Managing Director, Rainoil Ltd., Mr Gabriel Ogbechie, said Emadebe has set the pace in the importation process.
He said, “Deregulation is workable and way to go. There are so many challenges in the downstream sector including forex instability, which moved to N835 to the dollar.
“There are huge fluctuations 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 drop.
“Floating exchange rate is the right thing to do because the huge disparities between the official rate and black market rates were not sustainable.
“Government should provide liquidity to the market to ease importation. If the government do not provide liquidity, this fluctuation will continue.”
