All Petroleum marketers can now buy products directly from
the Dangote Refinery, Lagos.
The decision was reached at a meeting of the technical
committee headed by the Minister of Finance and Coordinating Minister of the
Economy, Mr. Wale Edun, according to a
statement by the ministry, in Abuja, this afternoon.
This ends the arrangement in which the Nigerian National
Petroleum Company Limited (NNPCL) was acting as the sole off-taker of the
Dangote Refinery products.
According to a statement by the Minister, “Following the
directive of the Federal Executive Council (FEC) and the implementation of the
new Naira-based sales mechanism, the Implementation Committee on the Sales of
Crude Oil and Refined Products in Naira, chaired by the Honourable Minister of
Finance and Coordinating Minister of the Economy, Mr Wale Edun. held its second
review meeting on Wednesday, October 10, 2024.
“The meeting focused on assessing the transition towards a
deregulated market structure for Premium Motor Spirit (PMS) and addressing the
change in the purchasing model for petroleum product marketers.
Key update: “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. 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.
“This direct purchasing mechanism allows marketers to
negotiate commercial terms directly with the refineries, fostering a more
competitive market environment and enabling a smoother supply chain for petroleum
products.
“Local Production of PMS: With the commencement of local PMS
production, the market is better equipped to support these direct transactions.
This transition is expected to enhance efficiency in product availability and
stabilize market conditions for the benefit of all Nigerians.
The Committee recognizes that there are questions and
discussions regarding this change in the market structure. We are committed to
providing clarity on this development and will continue to engage with stakeholders
to ensure a seamless transition process the Minister informed.”
He described the direct purchase of PMS by petroleum product
marketers as a new era of growth and development for Nigeria’s petroleum
industry and reassured stakeholders that the Committee will continue to provide
clarity and engage with stakeholders to ensure the success of this new regime.”
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