The Dangote Petroleum Refinery has commenced direct supply of Premium Motor Spirit (petrol) to select oil marketers, bypassing the Nigerian National Petroleum Company Limited.
According to sources, more marketers are seeking direct purchases, while others import the commodity. Hundreds of millions of litres of imported PMS are expected to arrive in Nigeria within two weeks.
The development follows National Reports exclusive report on imported PMS vessels arriving at Nigerian seaports. A Nigerian Port Authority document revealed 123.4 million litres of PMS berthed at two seaports to enhance national fuel supply.
A senior refinery official confirmed marketers are lifting PMS directly from the Lekki-based plant on a willing-buyer, willing-seller basis.
“Marketers are already coming to the refinery to lift PMS. They are lifting directly from the refinery, not through a third party,” the official stated.
The official noted that marketers wouldn’t purchase if prices weren’t favourable. Agreements with some marketers are in place, with more negotiations ongoing.
Trucks from various marketers were spotted loading PMS directly from the refinery. The facility prioritizes petrol production, allocating 53% of crude oil supplies.
A notable major marketer confirmed direct purchases, describing it as a normal business transaction.
This development contradicts claims that the refinery required terminating its NNPC deal to sell petrol to marketers. Initially, NNPC was announced as the sole off-taker of Dangote’s petrol from September 15.
However, the Technical Subcommittee on Domestic Sale of Crude Oil in Local Currency announced on October 11 that marketers could purchase directly from refineries.
The Minister of Finance, Wale Edun, stated, “Moving forward, petroleum product marketers are now able to purchase PMS directly from local refineries without the intermediary role of NNPC.”
Operators welcomed the announcement, citing market deregulation. The Independent Petroleum Marketers Association of Nigeria (IPMAN) met with Dangote Industries’ Vice President, Devakumar Edwin, to discuss modalities.
IPMAN’s Vice President, Hammed Fashola, appreciated Edwin’s cooperation, stating, “We have started discussing modalities and other logistics. IPMAN has agreed to work with Dangote.”
Despite initial concerns about the NNPC contract, refinery officials confirmed direct sales to marketers.
The refinery’s PMS price remains undisclosed, with the naira-for-crude committee expected to announce it.
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