FG grants Marketers direct access to Dangote Refinery for fuel purchases

By Kazeem Ugbodaga

The Federal Government has authorized petroleum product marketers to purchase fuel directly from Dangote Refinery, bypassing the previous arrangement of sourcing through the Nigerian National Petroleum Corporation Limited (NNPCL).

This directive is part of ongoing efforts to implement a new Naira-based sales mechanism for crude oil and refined products.

During the second review meeting of the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the transition to a deregulated market structure for Premium Motor Spirit (PMS) was a central focus.

This meeting, held on Wednesday, October 10, 2024, follows the Federal Executive Council’s (FEC) directive to reform Nigeria’s petroleum market.

Key Update:

Edun announced that under the new arrangement, marketers are now empowered to purchase PMS directly from local refineries, including Dangote Refinery.

This marks a significant shift from the previous model where NNPCL acted as the sole intermediary for PMS distribution.

“This direct purchasing model allows marketers to negotiate commercial terms with the refineries, fostering a more competitive market environment and enhancing the efficiency of the supply chain for petroleum products,” Edun explained.

He further noted that with the commencement of local PMS production, the market is well-positioned to support these transactions, improving product availability and stabilizing fuel supply for Nigerians.

Edun acknowledged that there may be concerns about the new market structure, but assured stakeholders that the Committee is committed to providing clarity and will continue to engage with all parties to ensure a smooth transition.

He said the government expects these changes to benefit Nigerians by improving efficiency and maintaining stable market conditions.