The Federal Government has granted approval for petroleum marketers to begin lifting fuel directly from the Dangote Refinery, bypassing the Nigerian National Petroleum Company Limited (NNPCL).
This move will create a more competitive market and stabilize fuel supply, unlike the previous mandate allowing only NNPC to lift fuel from Dangote Refinery.
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According to Wale Edun, Minister of Finance and Coordinating Minister of the Economy, the approval follows a directive from the Federal Executive Council (FEC) and the adoption of a new naira-based sales model. “Marketers can now purchase premium motor spirit (PMS) directly from local refineries, which is a major departure from the previous system where the NNPCL was the sole buyer and distributor,” Edun stated.
This new approach allows marketers to negotiate terms directly with the refineries, which Edun believes will promote competition and create a more efficient supply chain for fuel distribution across Nigeria.
At the committee’s meeting on October 10, Edun highlighted that the shift toward local production of PMS would be a game changer for Nigeria’s oil industry. “This transition will enhance product availability and stabilize market conditions to benefit all Nigerians,” he said.
The minister also assured that the government will provide further guidance to ensure a smooth transition for stakeholders involved.
This development is expected to alleviate some of the challenges faced by petroleum marketers, who have long requested permission to lift fuel from Dangote Refinery.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) had recently complained about the NNPCL’s inability to supply products to its members.
