The Federal Government has given marketers permission to begin lifting premium motor spirit, also known as petrol, from the Dangote Refinery without going through the Nigerian National Petroleum Company Limited (NNPCL).
According to a statement issued on Friday by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the action followed a mandate from the Federal Executive Council (FEC) and the implementation of the new naira-based sales mechanism.
“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,” the minister who chairs the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira said.
“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.”
FEDERAL MINISTRY OF FINANCE ABUJA
PRESS STATEMENT
UPDATE ON DIRECT PURCHASE OF PMS BY PETROLEUM PRODUCT MARKETERS
Following the directive of the Federal Executive Council (FEC) and the implementation of the new Naira-based sales mechanism, the Implementation Committee on the… pic.twitter.com/sTg7oI8xWf
— Federal Ministry of Finance (@FinMinNigeria) October 11, 2024
With the move, marketers can now negotiate commercial terms directly with the refineries which the minister said will help in “fostering a more competitive market environment and enabling a smoother supply chain for petroleum products”.
The minister said in the committee’s meeting on October 10, it also agreed that the commencement of local production of PMS will be a game changer for the industry.
“This transition is expected to enhance efficiency in product availability and stabilize market conditions for the benefit of all Nigerians,” Edun said.
He assured the committee is ready to provide clarity regarding changes in the market.
“We are committed to providing clarity on this development and will continue to engage with stakeholders to ensure a seamless transition process,” he assured.
