FG Gives Approval For Marketers To Lift Fuel From Dangote Refinery
Previously routed through the Nigerian National Petroluem Company Limited (NNPCL), traders can now start removing premium motor spirit, or fuel, from the Dangote refinery directly from the federal government.
Wale Edun, minister of finance and economic coordination, said on Friday that the decision was made in response to a direction from the FEC and the introduction of the new sales mechanism denominated in naira.
“The most significant change under the new regime is that petroleum product marketers can now purchase PMS directly from local refineries,” said the minister who chairs the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira, referring to the novel direct purchase model.
“The previous arrangement had the Nigerian National Petroleum Corporation (NNPCL) acting as the only buyer and distributor of refined petroleum products (PMS), but this is a change from that.”
The minister stated that this change will aid in “fostering a more competitive market environment and enabling a smoother supply chain for petroleum products.” since it allows marketers to negotiate commercial terms directly with the refineries.
During the committee meeting on October 10, the minister said that the industry will be greatly transformed when domestic PMS production starts.
The minister said: “We expect this transition to enhance efficiency in product availability and stabilise market conditions for the benefit of all Nigerians.”
In regards to market shifts, he reassured the committee that he is prepared to shed light.
“Our top priority is to keep stakeholders informed and to provide them with the information they need to make the transition as smooth as possible,” he promised.
This is good news for the country’s petroleum marketers, who have been hounding the Dangote refinery in Lagos for authorisation to ship their product for some time.
Thursday, IPMAN, Nigeria’s Independent Petroleum Marketers Association, claimed that NNPCL owes them “almost N15 billion” and has stopped supplying supplies to IPMAN members.
Nearly three months have passed since our funds were transferred to the NNPCL. Garima demanded that the company either sell the commodity to them at the same price as they are receiving it from Dangote Refinery or give them their money back so they may buy it directly from the refinery.
The claim was made after NNPCL recently changed the price of petrol at its retail locations in Abuja and Lagos.
A litre of fuel was sold at NNPCL stations in Lagos for ₦998, up from the original price of ₦855. The rate in Abuja rose from 897 to 1,030 naira. In certain areas of Lagos State, the product might cost up to 1,050 naira at other petrol stations.