Federal Government has announced that the Nigerian National Petroleum Company Limited will be the exclusive buyer of Premium Motor Spirit from the Dangote Refinery.
According to The PUNCH, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, revealed this development during a press briefing held on Friday in Abuja.
Under this new arrangement, marketers interested in procuring petrol will need to do so through NNPC’s trading company.
This decision forms part of the commercial agreement between the Federal Government and Dangote Refinery regarding the supply of crude oil and the distribution of petrol and diesel produced at the refinery.
The announcement marks a significant shift from NNPC’s earlier statement, made at the start of the month, where it had claimed no intention to be the sole distributor of petrol from Dangote Refinery.
The new directive implies that the government will maintain control over petrol pricing, which will be governed by the terms of the agreement between NNPC and the refinery.
According to the minister, represented by Dr. Zacceus Adedeji, Executive Chairman of the Federal Inland Revenue Service, Dangote Refinery is set to begin distributing petrol to marketers starting Sunday, September 15, 2024, with an initial supply of 25 million litres per day.
From October 1, NNPC will start supplying crude oil to Dangote Refinery, with payments to be made in naira. In return, the refinery will supply PMS and diesel of equivalent value to the domestic market, also payable in naira.
“For now, PMS will only be sold to NNPC. NNPC will then distribute it to various marketers,” the minister stated.
Additionally, the minister highlighted that all regulatory costs associated with the Nigeria Ports Authority, Nigerian Maritime Administration and Safety Agency and other entities involved will also be settled in naira. Diesel will be sold to any interested off-taker by Dangote Refinery, with all related regulatory fees handled in the local currency.
“The technical committee that has worked on this initiative will transition into an Implementation, Execution, and Monitoring Committee, which will operate out of Lagos for the next three to six months,” he added.
This new policy, which follows President Bola Tinubu’s directive to the Federal Executive Council on July 29, aims to bolster the local currency by facilitating transactions in naira, thus reducing unnecessary costs and enhancing the availability of petroleum products within the country.
