In a significant development, the Dangote Petroleum Refinery has started supplying Premium Motor Spirit (PMS) directly to oil marketers, bypassing the Nigerian National Petroleum Company Limited (NNPC).
This move is expected to boost fuel supply and efficiency in the country.
A senior official at the refinery confirmed that marketers are now allowed to approach the company for direct business transactions 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.
As major oil marketers import PMS, hundreds of millions of litres of imported PMS are expected to arrive in Nigeria within two weeks. The Nigerian Port Authority reported that about 123.4 million litres of PMS were berthed at two seaports between October 18 and 20.
Due to high demand for petrol in Nigeria and other countries, the refinery has focused on ensuring 53% of PMS production from its crude oil supplies. This could be reviewed if demand for other finished products increases.
The Technical Subcommittee on Domestic Sale of Crude Oil in Local Currency announced that marketers can now purchase PMS directly from local refineries without NNPC’s intermediary role. This move promotes competition and improves market efficiency.
The NNPC initially claimed to have bought PMS from Dangote at N898/litre, but the refinery described this as mischievous. The naira-for-crude committee is yet to announce the price of its PMS.
