FG releases Update On Direct Petrol Sales To Oil Marketers By Dangote Refinery

FG releases Update On Direct Petrol Sales To Oil Marketers By Dangote Refinery

The directive followed the decision of the Federal Executive Council (FEC) and the implementation of the new Naira-based sales mechanism, the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira, during its meeting on Wednesday chaired by Edun.

The Nigerian government has released updates on the permits granted to petroleum marketers to directly lift petrol from Dangote Refinery without the Nigerian National Petroleum Company Limited (NNPC) acting as an intermediary.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, released the updates on Friday afternoon, a few hours after the government announced that oil marketers can now directly buy Premium Motor Spirit, popularly known as petrol, from Dangote Refinery.

The directive followed the decision of the Federal Executive Council (FEC) and the implementation of the new Naira-based sales mechanism, the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira, during its meeting on Wednesday chaired by Edun.

According to the minister, the meeting focused on assessing the transition towards a deregulated market structure for Premium Motor Spirit (PMS) and addressing the change in the purchasing model for petroleum product marketers.

He said that the key updates include, “New Direct Purchase Model: The most significant change under the new regime is that petroleum product marketers can now purchase PMS directly from local refineries.

“This marks a departure from the previous arrangement where the Nigerian National Petroleum Corporation (NNPCL) served as the sole purchaser and distributor of PMS from the refineries.

“This direct purchasing mechanism allows marketers to negotiate commercial terms directly with the refineries, fostering a more competitive market environment and enabling a smoother supply chain for petroleum products.

Local Production of PMS: With the commencement of local PMS production, the market is better equipped to support these direct transactions.

“This transition is expected to enhance efficiency in product availability and stabilize market conditions for the benefit of all Nigerians.”

“The Committee recognizes that there are questions and discussions regarding this change in the market structure,” Edun added.