NMDPRA Reduces Fuel Diversion by 35% as Filling Stations Start Selling Below NNPC Price

• For the decades that fuel subsidies lasted in Nigeria, the incidence of fuel diversion to neighbouring countries remained a source of worry
• Stakeholders alleged that the smugglers were buying the product at the subsidised price in Nigeria to resell at higher rates in other countries
• Nigeria depot operators and petroleum marketers have confirmed that such incidents have reduced due to the regulator's efforts

Ruth Okwumbu-Imafidon, a journalist with Legit.ng, has over a decade of experience in business reporting across digital and mainstream media.

Thanks to the anti-smuggling measures implemented by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), cross-border fuel diversions have reduced by up to 35%.

This reduction has helped enhance stability and innovation in Nigeria’s downstream sector, ensuring that investments and productions meant for Nigerians remain in Nigeria.

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) commended the NMDPRA for its strategic oversight in the sector and for helping to address key challenges.

DAPPMAN's executive secretary, Olufemi Adewole, in a statement, noted that NMDPRA’s efforts have produced the industry with a firm, fair, and functional leadership, and improved investors’ confidence in Nigeria’s downstream sector.

Adewole promised that the depot operators and marketers would continue to support the NMDPRA leadership to ensure that Nigerians access world-class energy solutions.

No more fuel scarcity, according to DAPPMAN

Adewole added, in his statement, that due to the strict measures applied by the regulator and other key stakeholders in Nigeria’s petroleum sector, fuel scarcity has finally become a thing of the past in Nigeria.

He commended the steps taken to achieve petrol sufficiency and streamline the licensing processes, noting that it has boosted private sector participation and attracted $1.2 billion investments into modular refineries in Nigeria since 2022.

He said:

“Other notable achievements of the NMDPRA include its price stricter anti-smuggling measures which have reduced cross-border fuel diversion by 35%, according to an NNPC Security Report; improved innovation and compliance enforcement through the Automated Downstream System which is reducing hoarding and illegal sales through real-time monitoring of product distribution; zero tolerance for adulterated products yielding improved fuel quality, with 98 per cent compliance in major depots; and regulatory predictability driving long-term planning and investment.”

He particularly praised the efforts of the regulator to stop adulterated petroleum products from entering the Nigerian market, adding that Nigerians now have access to better-quality petroleum products at improved prices.

He pointed out that the regulator has also reduced the incidence of illegal refining and enforced standard quality for the benefit of Nigerians, the Punch reports.

Nigeria Customs seizes N238 million worth of fuel

Recall that the Nigeria Customs Service (NCS) has repeatedly intercepted and seized smuggled fuel.

In a recent operation, fuel worth about N238 million was intercepted and seized while the criminals were trying to get it across the borders.

The comptroller-general explained that the criminals engage in fuel smuggling to make some money off reselling the product in other countries where PMS is more expensive.

Filling stations start selling below NNPC

In related news, petrol price competition remains heated in Nigeria, with some filling stations now selling below NNPC's price.

Legit.ng reported that two of Dangote Refinery's partners, Ardova and MRS filling stations, currently offer the cheapest prices nationwide.

Both filling stations sell at N865 and N870, well below the N880 and N890 offered in other major filling stations.

Proofreading by Kola Muhammed, copy editor at Legit.ng.

Source: Legit.ng