Fuel Supply: Private Depot Owner, Emadeb Energy Imports 27 Million Litres

A depot owner and one of the marketers authorised to import petrol, Emadeb Energy Service Ltd., has received 27 million litres at its facility.
Its Chief Executive Officer, Debo Olujimi, said this on Wednesday in Lagos during the opening ceremony for its Ijegun Satellite Depot.
He claims that this will improve the nation’s goods distribution.
According to Olujimi, the 27 million litre shipment cost more than 17 million dollars because of the fluctuating currency rates on the global market.
Following the elimination of subsidies by President Bola Tinubu on May 29, Emadeb is one of the first marketers to import fuel, according to the News Agency of Nigeria (NAN).
According to Olujimi, 27 million litres of petrol were imported to supplement the imports made by the Nigerian National Petroleum Company Ltd. (NNPCL) throughout the course of the previous eight years as the single 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 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,” 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 CEO of Emadeb praised President Tinubu for deregulating the downstream industry and added that the firm anticipates a long-term expansion of the oil and gas industry.

Despite the fluctuating foreign exchange rate, Ahmed Farouk, the Authority Chief Executive, Nigeria Midstream and Downstream Petroleum Regulatory (NMDPRA), applauded Emadeb for taking the risky decision of importing fuel.
Sadiq Bashir, the Executive Director of the Corporation Services and Administration of NMDPRA, spoke on behalf of Farouk, who said that the business has made considerable strides towards efficient product distribution.
According to him, deregulation wasn’t about pricing but rather about widening the market.
He said 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 is benchmarked with the international price.
Olawale Afolabi, the Secretary General of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) said that market liberalisation was aided by deregulation.
The importance, according to Afolabi, was that Emadeb had confronted NNPCL, who had hitherto been the only importer, head-on by bringing in merchandise.
According to him, the most crucial aspect of deregulation should be its foundation in local manufacturing.
“The huge price increase in petrol is affecting Nigerians, the international market cannot be determined by the government.
In order for Nigeria to have its own refineries, he pleaded for investors to come and invest in the industry.
Following the withdrawal of subsidies, Mike Osatuyi, the Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), praised Emadeb for starting imports.
The marketer said that allowing currency rates to fluctuate was the best course of action since the stark differences between official rates and black market prices could not continue.
He pleaded with the government to inject cash into the market to facilitate imports.
“If the government do not provide liquidity, this fluctuation will continue,” he added.
According to NAN, bankers, investors, and representatives from the oil and gas business attended the launching of the first petrol cargo by Emedab Energy.

Source: Allnews Nigeria

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