Business

FG Allows Oil Marketers to Directly Source Petrol from Dangote Refinery

Published by Tope Fakinlede on October 12th, 2024.

FG Allows Oil Marketers to Directly Source Petrol from Dangote Refinery

The federal government has announced that petroleum marketers can now directly obtain petrol from Dangote Refinery, bypassing the Nigerian National Petroleum Company Limited (NNPC) as an intermediary.

This decision represents a significant shift in fuel distribution, confirming that NNPC is no longer the exclusive off-taker for products from Dangote Refinery.

In a statement on Friday, Finance Minister and Coordinating Minister of the Economy, Wale Edun, who leads the Naira-crude sale implementation committee, shared updates on the naira-based crude purchase and product sales initiative. The committee recently held its second review meeting on October 10 to evaluate progress.

“The committee is pleased to report a successful transition in line with the directive from the Federal Executive Council,” the statement read. “This directive has created a solid framework for the local production and distribution of crude oil and refined products for domestic consumption in naira.”

With this new mechanism in place and local production underway, the statement noted that the market is on track to fully deregulate petroleum products.

Edun emphasized that “marketers are now empowered to purchase petrol directly from local refineries without the NNPC’s involvement.”

He encouraged marketers to engage in direct negotiations with refineries to foster competition and enhance market efficiency.

The government is hopeful that these measures will lead to a more competitive market, ultimately benefiting Nigerian consumers in the long term.