House Probes Fuel Licences, Dollar Port Charges

Nigeria’s House of Representatives has stepped up efforts to address key problems in the downstream petroleum sector. Lawmakers oppose US dollar-denominated charges on petroleum products refined locally and will investigate claims of unfair fuel import licence allocations.

The House Committee on Petroleum Resources (Downstream) announced the plans during a meeting with industry stakeholders, including IPMAN, DAPPMAN and MEMAN. The session is part of the National Assembly’s review of the Petroleum Industry Act, which aims to strengthen domestic refining, improve energy security and encourage a more competitive market.

Committee Chairman Ikenga Ugochinyere said the panel would invite the NMDPRA, NUPRC, NPA, CBN, refinery operators and other agencies to respond to issues raised during the meeting. He said their submissions would guide proposed amendments to the law and help fix gaps in the downstream sector. He also criticised the continued use of US dollar-denominated charges for petroleum products refined and transported within Nigeria, warning that the practice increases the pump price of Premium Motor Spirit. “We have taken special note of the issue of dollar-denominated charges by the Nigerian Ports Authority. It is not good for the economy that, at a time like this, people involved in domestic downstream activities are still being charged in dollars. That ultimately affects the pump price of Premium Motor Spirit,” he stated.

The committee also plans to examine allegations that the same marketers received fuel import licence approvals for the first three quarters of 2026. Ugochinyere said lawmakers want a balanced approach that promotes domestic refining, protects marketers’ investments and safeguards energy security by keeping reliable fuel supplies available during refinery disruptions.

In its presentation, DAPPMAN warned that many petroleum depots remain inactive because of market imbalances and limited access to alternative fuel supplies. The association also expressed concern about growing reliance on a single supplier of Premium Motor Spirit and urged greater transparency in fuel import licence allocations. It further called for an end to multiple port charges and continued foreign currency billing for local petroleum transactions, noting that “This practice persists despite a presidential directive suspending foreign currency-denominated billing for local operations. We urge the committee to ensure compliance.”

Meanwhile, IPMAN welcomed government support for private refining but said marketers still struggle with expensive loans, multiple taxes, exchange rate volatility and limited access to refinery products. The association proposed creating a Petroleum Bank to offer single-digit interest loans and encouraged multinational oil firms to invest more in local refining. It also suggested allowing independent marketers to help manage government-owned refineries to improve their operations.

Can these planned reforms create a fairer and more competitive downstream petroleum sector for all stakeholders?