New Era for Fuel Importation in Nigeria: Dangote Refinery Now Directly Accessible to Marketers
In a significant move aimed at boosting the Nigerian oil and gas industry, the Federal Government has given approval for petroleum marketers to purchase premium motor spirit (PMS) directly from the Dangote Refinery without going through the Nigerian National Petroleum Corporation Limited (NNPCL). This new development is expected to usher in a new era of efficiency and competitiveness in the fuel importation process.
According to a statement by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the move was made possible after a directive from the Federal Executive Council (FEC) and the implementation of a new naira-based sales mechanism. Edun, who chairs the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira, said that the new direct purchase model will allow marketers to negotiate commercial terms directly with local refineries, fostering a more competitive market environment and enabling a smoother supply chain for petroleum products.
Marketers, including the Independent Petroleum Marketers Association of Nigeria (IPMAN), have been advocating for the opportunity to lift PMS from the Dangote Refinery, which is seen as a major step towards ending the monopoly of the Nigerian National Petroleum Company Limited (NNPCL) over fuel imports. The IPMAN has accused the NNPCL of owing it nearly N15 billion and failing to supply products to its members, while also adjusting the petrol pump price in its retail outlets in Lagos and Abuja.
