Oil marketers have confirmed that they will start lifting Premium Motor Spirit (PMS) from the Dangote Petroleum Refinery next week. This development follows weeks of anticipation as industry players prepare for a new era in Nigeria’s downstream oil sector. Marketers revealed they had begun dispatching trucks to the multi-billion-dollar refinery in Lagos, with others expected to follow suit by the end of the week.
While some marketers noted that their trucks would begin loading products from Sunday, others are finalizing arrangements to start lifting from the refinery in the coming days. The initial daily supply from Dangote’s facility is expected to be around 25 million liters. This is expected to have a significant impact on the market, as dealers gear up to reduce their dependence on the Nigerian National Petroleum Company (NNPC).
A major marketer, who spoke under anonymity, noted, “We should start loading from the plant next week. Marketers are also making moves to import PMS, with some vessels expected to arrive in the country within 10 days.” While price agreements have yet to be finalized, early estimates suggest that products could be sold for as high as N1,200 per liter, signaling a shift in the pricing dynamics for petrol in Nigeria.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, confirmed last week that the government has fully deregulated the downstream sector, meaning the government would no longer fix prices for petroleum products. This move, according to Lokpobiri, will allow the market to self-regulate and encourage competition, particularly with the introduction of products from the Dangote refinery.
While the NNPC has yet to officially begin loading petrol from the refinery, some marketers are already preparing for the shift. Talks between the Dangote refinery and NNPC are ongoing regarding crude oil pricing and the cost of PMS, with further updates expected soon.
