FG GIVES APPROVAL FOR MARKETERS TO START LIFTING OF PMS FROM DANGOTE REFINERY
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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.
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“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.”
Marketers can now negotiate commercial terms directly with refineries, according to the minister, which will contribute to “fostering a more competitive market environment and enabling a smoother supply chain for petroleum products.”.
The minister stated that the committee’s meeting on October 10 decided that the start of local PMS manufacture would 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.
The development is considered a benefit for petroleum marketers across the country, who have repeatedly requested permission to lift the product from the Dangote Refinery in Lagos.
On Thursday, the Independent Petroleum Marketers Association of Nigeria (IPMAN) stated that the Nigerian National Petroleum Company Limited (NNPCL) owes them “almost N15 billion” and has failed to distribute supplies to its members.
“Roughly now, they are owing us almost getting to N15bn,” IPMAN’s National President Abubakar Garima said on Channels Television’s Sunrise Daily.
“Our money has been with the NNPCL for almost three months now. Either they sell for us at the same rate they are getting the product from Dangote Refinery or refund us so we can buy directly from Dangote Refinery,” Garima said.
The claim arose in response to NNPCL’s most recent modification of petrol pump prices in its Lagos and Abuja retail stores.
NNPCL stores in Lagos sold a litre of fuel for N998, up from the initial price of N855. In Abuja, it increased to N1,030 from N897. Some fuelling stations in Lagos State charge up to N1,050 for the merchandise.
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