The Dangote Petroleum Refinery has commenced direct supply of Premium Motor Spirit (PMS), commonly known as petrol, to oil marketers, bypassing the Nigerian National Petroleum Company Limited (NNPC).
This move follows the Federal Government’s decision to deregulate the market, allowing marketers to purchase PMS directly from local refineries.
According to sources within the refinery, several marketers have already begun lifting PMS directly from the facility on a willing-buyer, willing-seller basis. The refinery’s management confirmed that agreements have been reached with some marketers, with more negotiations ongoing.
“We have started selling PMS to marketers directly,” a senior official at the refinery stated. “They are lifting directly from the refinery, not through a third party.” The official noted that the price of the product would be determined by mutual agreement between the refinery and the marketers.
This development contradicts earlier claims that the refinery would only sell PMS to the NNPC. Instead, the refinery has begun supplying marketers, with hundreds of millions of litres of imported PMS also expected to arrive in Nigeria within the next two weeks.
The move is expected to improve fuel supply nationwide, as major oil marketers intensify efforts to import the commodity.
The Dangote refinery has focused on producing 53% of PMS from its crude oil supplies to meet the high demand for petrol in Nigeria and other countries.
The Federal Government’s decision to allow direct sales from refineries to marketers aims to promote competition and improve market efficiency.
The Minister of Finance, Wale Edun, announced that marketers could now purchase PMS directly from local refineries without NNPC’s intermediary role.
Industry stakeholders, including the Independent Petroleum Marketers Association of Nigeria (IPMAN), have welcomed the development. IPMAN’s Vice President, Hammed Fashola, recently met with Dangote Industries’ Vice President, Devakumar Edwin, to discuss modalities for lifting PMS from the refinery.
