Petroleum marketers can now lift petrol directly from Dangote refinery, bypassing NNPC, following new government directives promoting competition.
[dropcap]T[/dropcap]he Federal Government has granted petroleum marketers permission to purchase petrol directly from the Dangote refinery, bypassing the Nigerian National Petroleum Company (NNPC).
This move is part of an initiative to sell crude oil and refined products in naira, fostering competition and improving market efficiency.
Also read: Subsidy: FG may spend N236bn monthly on imported, Dangote petrol
The decision follows a directive by the Federal Executive Council, signalling a shift towards a fully deregulated petroleum market.
The Federal Government has granted petroleum marketers permission to lift petrol directly from the Dangote refinery without going through the Nigerian National Petroleum Company Limited (NNPC).
This development confirms earlier speculations that the NNPC will no longer be the exclusive off-taker of refined fuel from the Dangote facility.
In a statement released on Friday, Wale Edun, Minister of Finance and Chairman of the Naira-crude sale implementation committee, provided an update on the new arrangement.
The committee, chaired by Edun, had its second post-commencement review meeting on October 10, 2024, where it evaluated the progress of the Crude Oil and Refined Products Sales in naira initiative.
The statement highlighted that the new framework aligns with directives from the Federal Executive Council, enabling local production and distribution of crude oil and refined products in naira.
With this mechanism fully operational, petroleum product marketers are now encouraged to purchase petrol directly from refineries, including the Dangote refinery, on mutually negotiated commercial terms.
This shift is expected to improve market competition and efficiency while advancing towards a fully deregulated market for all petroleum products.
Wale Edun expressed optimism that these measures would create more favourable market conditions for Nigerians in the long run.
