In a significant shift, the Nigerian government has announced that petroleum marketers are now permitted to directly purchase Premium Motor Spirit (PMS) from the Dangote Refinery. This development ends the Nigerian National Petroleum Company Limited (NNPCL)’s role as the sole off-taker of Dangote-produced petrol, marking a new phase for fuel distribution in the country.
The announcement was made by Minister of Finance Wale Edun, following a meeting of the Naira-Crude Sale Implementation Committee. The decision is part of a broader government strategy to boost local PMS production and stabilize the market amidst fluctuating fuel prices.
With local production ramping up, the market is expected to become more efficient, and fuel availability should improve for Nigerians. This transition aims to enhance product accessibility and reduce dependence on imports, providing much-needed relief in a market facing high prices. Currently, the fuel price in Abuja has surged to ₦1,030 per liter, a significant increase attributed to supply challenges.
The government has assured that it will continue engaging stakeholders to ensure a smooth transition in the market, addressing concerns raised by petroleum marketers and the public alike. The move comes as the Independent Petroleum Marketers Association of Nigeria (IPMAN) rejected the NNPCL’s recent pricing decisions, while the Nigeria Labour Congress (NLC) has called for a reversal of the pump price hike.
