The Dangote Petroleum Refinery has commenced direct sales of Premium Motor Spirit (PMS), commonly known as petrol, to oil marketers, bypassing the Nigerian National Petroleum Company (NNPC). This new development is expected to boost local fuel availability as oil marketers are now purchasing the product directly from the refinery.
According to sources from the refinery, more marketers are lining up to secure direct deals with Dangote Refinery, even as some marketers continue importing petrol. In the next two weeks, hundreds of millions of liters of imported PMS are expected to arrive at Nigeria’s ports.
Earlier reports revealed that at least four vessels carrying imported PMS had docked at seaports along the country’s coastline between October 18 and 20. Documents from the Nigerian Ports Authority indicated that 123.4 million liters of petrol had been offloaded at two major ports to enhance fuel supply across the nation.
This growing interest in direct purchases from Dangote Refinery comes as some major oil marketers shift away from reliance on imports. A senior official at the refinery explained that marketers are now engaging in business directly with the refinery 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.
Though the specific price at which marketers are purchasing the petrol was not disclosed, the official assured that the rates are competitive enough to attract buyers. “If the price is not good, the marketers would not be coming to us,” he added.
The shift is part of broader changes following the Federal Government’s decision to supply crude oil to the Dangote facility. The refinery is currently using 53% of its crude oil supplies to produce petrol, with the remaining portions allocated to other refined products. This proportion may change depending on future demand for other refined petroleum products.
Confirming the new arrangement, a major marketer in Nigeria remarked, “Yes, everyone is in the process. This was advised that it would happen soon and is a normal business transaction.”
The direct sales arrangement signals a departure from previous reports suggesting that the refinery would not sell petrol directly to marketers unless its agreement with NNPC was terminated. Initially, NNPC was positioned as the sole off-taker for the refinery’s petrol output, but recent changes allow marketers to buy directly from Dangote.
In a statement, Wale Edun, the Minister of Finance, clarified that petroleum marketers are now free to purchase petrol from local refineries on mutually agreed terms, a move expected to boost competition and market efficiency.
“Moving forward, petroleum product marketers are now able to purchase PMS directly from local refineries without the intermediary role of NNPC. Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency,” the Minister of Finance, Wale Edun, who heads the committee stated in a statement.
