On Friday, October 11, 2024, the Nigerian government directed petroleum marketers to lift petroleum products, especially PMS, from the Dangote Refinery.
The government’s approval ends the Nigerian National Petroleum Company Limited’s (NNPC) role as the sole distributor of the refinery’s petrol, leading to the total deregulation of the downstream oil sector.
The Naira-For-Crude Sale Implementation committee chairman and minister of Finance, Wale Edun, said the development is part of the government’s bigger plan to deregulate the petroleum market and encourage competition.
Edun updated Nigerians on the new deal to sell crude oil to local refineries in naira, allowing refiners easy access to the product.
He confirmed that petroleum marketers can purchase petrol directly from local refineries, including the Dangote Refinery, without going through the NPPC.
He said:
The new arrangement, which includes the commencement of local production, is a crucial step in deregulating Nigeria’s oil sector.
The government believes the measures will create more favourable market conditions for Nigerians.
The committee noted the smooth implementation of the directive, setting the stage for improved market dynamics in the oil industry.
TimesNow.com.ng previously reported that the Independent Petroleum Marketers Association of Nigeria (IPMAN) had threatened to stop operations nationwide due to the high cost of petrol sold to its members by the NNPC.
The association disclosed on Thursday, October 10, 2024, that the cost of petrol from the Dangote Refinery was about N987 per litre, noting that the state oil company sold the product to marketers at N1,010 per litre in Lagos.
IPMAN threatened to embark on strike, demanding a refund from NNPC for earlier petrol supply payments made by its members.
Analysts believe the situation could worsen the petrol scarcity and queues nationwide.
Punch reports that on Thursday, October 10, 2024, Major Energies Marketers Association of Nigeria (MEMAN) were still loading subsidised petrol from Dangote Refinery on earlier arrangements with the NNPC.
Chinedu Ukadike, IPMAN’s national publicity secretary, said the association may be forced to take action if the issue with NNPC is not resolved.
The national president of IPMAN, Abubakar Maigandi, disclosed that NNPC asked its members to buy petrol from its depot in Lagos at N1,010 per litre.
He stated that the price was higher than what NNPC paid for the product at the Dangote Refinery.
TimesNow.com.ng earlier reported that the latest data from the Major Energies Marketers Association of Nigeria (MEMAN) showed that petrol landing cost had dropped to N975.89 per litre.
Crude oil prices and forex are the major drivers of petroleum product prices, including petrol, aviation fuel and kerosene.
