The Ministry of Mines and Energy has announced the lifting of the moratorium on the issuing of wholesale petroleum licenses, effective 16 August 2024.
According to the Ministry, the moratorium, which has been in place since 15 August 2022, was instituted to allow for improvements in the licensing system and processes to better serve the public.
The Ministry has,however, maintained the moratorium on issuing new retail licenses , while it continues to assess the fuel retail market with a view to reviewing the suspension.
“The moratorium on issuing new retail licenses continues to be in place. This is because there is evidence that the average demand for fuel has not increased, suggesting that issuing new retail licenses will negatively affect the viability of existing retail outlets,” the Ministry said.
The moratorium on fuel retail licenses aimed to address concerns from fuel business operators about increased competition without a corresponding rise in fuel demand across the country.
Since 2018, the Ministry has issued 87 new retail licenses, bringing the total number of active licenses to more than 500 nationwide.
Despite the increase, annual fuel consumption was recorded at 429 million liters for petrol and 727 million liters for diesel, not reflective of the increase in retail outlets.
