The Federal Government has granted new permissions to petrol marketers following the commencement of operations at the Dangote Refinery, aiming to streamline fuel distribution and address market demands.
The Federal Government has authorized petroleum marketers to source petrol directly from the Dangote refinery, circumventing the Nigerian National Petroleum Company Limited (NNPC).
This development validates earlier speculations that NNPC will no longer be the sole off-taker of fuel from the Dangote facility.
In a statement issued on Friday, Wale Edun, the Minister of Finance and Chairman of the Naira-Crude Sale Implementation Committee, shared updates regarding advancements in crude procurement and product sales conducted through naira transactions.
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The Implementation Committee, led by Edun, conducted its second post-commencement review meeting on October 10 to evaluate the initiative concerning the sale of Crude Oil and Refined Products in Naira.
The committee is delighted to announce a successful shift in operations following the directive from the Federal Executive Council. This mandate has set up a strong framework for producing and distributing crude oil and refined products locally, with transactions conducted in naira.
With this mechanism fully operational and local production underway, we are in an excellent position to move towards a fully deregulated market for all petroleum products.
The statement announced that petroleum product marketers can now buy PMS directly from local refineries, bypassing the intermediary role of NNPC. Marketers are encouraged to negotiate commercial terms directly with the refineries, fostering competition and enhancing market efficiency.
Edun also conveyed confidence that these policies would eventually lead to more favorable market conditions, benefiting the Nigerian population.
