The federal government has approved marketers to lift premium motor spirit (PMS) from any source, thereby kick-starting the full deregulation of the petroleum industry.
With this approval, marketers will not have to go through the Nigerian National Petroleum Company Limited (NNPCL) to lift petrol from the Dangote refinery again
Before now, the NNPC Limited was the sole importer of premium motor spirit (PMS), commonly known as petrol, into the country and was the only organisation authorised to buy the product from the Dangote Refinery in Lagos.
However, with the latest developments, other oil marketers can approach the private refinery for petrol and sell it to its customers.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said in a statement that the NNPC will now begin to sell crude oil to local refiners in Naira.
According to a Friday statement by the Minister of Finance and the coordinating minister, 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.”
With the move, marketers can now negotiate commercial terms directly with the refineries which the minister said will help to “foster a more competitive market environment and enable a smoother supply chain for petroleum products”.
The minister said after the committee’s meeting on October 10, that it also agreed that the commencement of local production of PMS will be a game changer for the industry.
“This transition is expected to enhance efficiency in product availability and stabilise market conditions for the benefit of all Nigerians,” Edun said.
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.
The development is seen as a boost to petroleum marketers 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.
“Roughly now, they are owing us almost N15bn,” IPMAN’s National President Abubakar Garima said on Channels Television’s Sunrise Daily.
“Our money has been with the NNPCL for almost three months now. Either they sell for us at the same rate they are getting the product from Dangote Refinery or refund us so we can buy directly from Dangote Refinery,” Garima said.
The allegation came in the wake of NNPCL’s most recent adjustment of the petrol pump price in its retail outlets in Lagos and Abuja.
