The Nigerian government has announced that the Nigerian National Petroleum Company Limited will be the exclusive buyer of Premium Motor Spirit from Dangote Refinery.
Interested marketers will need to purchase the product from the national oil firm through its trading company. This agreement comes as part of the deal between the government and Dangote Refinery on the commercial terms for the supply of crude oil to the refinery, as well as the distribution of petrol and diesel from the facility.
This latest development contradicts NNPC’s previous claim that it did not intend to be the sole distributor of petrol produced by the Dangote refinery. The directive also implies that the government will be able to control the pricing of the product based on the agreement with the refinery.
The Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, disclosed these details at a press briefing in Abuja. He also announced that Dangote Refinery will start distributing petrol to marketers, kicking off with an initial 25 million litres per day on Sunday.
Additionally, it was announced that the Dangote refinery will commence the distribution of petrol to marketers on Sunday, starting with an initial 25 million litres per day.
The Minister also explained that all associated regulatory costs pertaining to the Nigeria Ports Authority, Nigerian Maritime Administration and Safety Agency, and others would be paid for in naira.
He further clarified that diesel will be sold in naira by Dangote Refinery to any interested off-taker and that all associated regulatory costs will be paid in naira.
The move to sell crude oil to local refineries in naira and purchase petrol from the refiners in the local currency is aimed at reducing pressure on the local currency, eliminating unnecessary transaction costs, and improving the availability of petroleum products in the country.