FG Gives Approval For Marketers To Lift Fuel From Dangote Refinery

  By ChannelsTV 

Tankers lift petrol from Dangote Refinery on September 15, 2024 in Lagos

The Federal Government has given approval for marketers to begin the lifting of premium motor spirit commonly known as fuel from the Dangote Refinery without going through the Nigerian National Petroluem Company Limited (NNPCL). 

According to a Friday statement by the Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, the move followed a directive 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.

“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.”

‘Smoother Supply Chain’

With the move, marketers can now negotiate commercial terms directly with the refineries which the minister said will help in “fostering a more competitive market environment and enabling a smoother supply chain for petroleum products.”

The minister said in the committee’s meeting on October 10, it was also agreed that the commencement of local production of PMS will be a game changer for the industry.

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.

Vehicles queue for fuel at an NNPC (Nigerian National Petroleum Corporation) filling station in Lagos, on September 4, 2024. (Photo by FAWAZ OYEDEJI / AFP)

The development is seen as a boost to petroleum marketers across the country who have repeatedly asked that they be allowed to lift the product from the Dangote Refinery located in Lagos.

On Thursday, the Independent Petroleum Marketers Association of Nigeria (IPMAN) said the Nigerian National Petroleum Company Limited (NNPCL) owes it “almost N15 billion” and has failed to supply products to its members.

 Channels Television