The Federal Government has granted permission to petroleum marketers to lift petrol directly from the Dangote Refinery without going through the Nigerian National Petroleum Company Limited, NNPCL.
This confirms the speculation that the NNPCL will no longer be the sole off-taker of the Dangote fuel. In a statement on Friday, the Minister of Finance and Chairman of the Naira-crude sale implementation committee, Wale Edun, gave an update on the takeoff of crude purchase and product sales in naira transactions.
The Implementation Committee chaired by Edun was said to have held its second post-commencement review meeting on October 10, to evaluate the progress of the Crude Oil and Refined Products Sales in naira initiative.
“The committee is pleased to report a successful transition of operations in line with the directive issued by the Federal Executive Council. This directive has established a robust framework for local production and distribution of crude oil and refined products for local consumption in naira.
“With this mechanism now in full operation, along with the commencement of local production, we are well-positioned to transition to a fully deregulated market for all petroleum products.
“Moving forward, petroleum product marketers are now able to purchase PMS directly from local refineries without the intermediary role of NNPC. Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency,” the statement said.
READ ALSO : NNPCL ends exclusive fuel sale to Dangote Refinery
Edun noted that the government remained confident that, in the long term, these measures will create better market conditions for the benefit of all Nigerians.
Credible News recalls that NNPCL, officially ended its exclusive purchase agreement with Dangote Refinery, allowing other marketers to buy petrol directly from the refinery.
This shift marks a significant step toward liberalizing the market and fostering competition. NNPCL will no longer be the sole off-taker of petrol from the 650,000-barrels-per-day Dangote Refinery, which began processing petrol earlier in September.
Specifically, independent marketers can now negotiate prices with the refinery, following the same practice as other fully deregulated products like diesel, aviation fuel, and kerosene.
The decision comes after pressure from the House of Representatives, which called for an end to the exclusivity arrangement, citing concerns over competition.
Lawmakers argued that the dominance of NNPCL and major marketers in the off-take of Dangote’s petrol could lead to monopolistic practices and price manipulation, urging for a more inclusive approach that benefits independent marketers and reduces costs for consumers.
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