Federal government approves direct purchase of fuel from Dangote refinery

Petroleum marketers now have the ability to obtain fuel straight from the Dangote refinery, bypassing the Nigerian National Petroleum Company Limited, thanks to a permit from the Federal Government. 

This supports rumours that the NNPC won't be the only company using Dangote fuel for offtake. 

The start of crude purchase and product sales in naira transactions was updated in a statement released on Friday by Wale Edun, the Minister of Finance and Chairman of the Naira-Crude Sale Implementation Committee. 

On October 10, the second post-commencement review meeting of the Implementation Committee, led by Edun, was reportedly conducted to assess the development of the Crude Oil and Refined Products Sales in Naira program.

“The committee is pleased to report a successful transition of operations in line with the directive issued by the Federal Executive Council. This directive has established a robust framework for local production and distribution of crude oil and refined products for local consumption in naira.

“With this mechanism now in full operation, along with the commencement of local production, we are well-positioned to transition to a fully deregulated market for all petroleum products.

“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 statement said.

Edun stated that the government is still optimistic that these actions will improve market conditions over time for the good of all Nigerians.

Source