October 11, 2024
By Samuel Ogunsona
The Federal Government has made a significant move in deregulating the petroleum market by granting permission to petroleum marketers to lift fuel directly from the Dangote refinery, bypassing the Nigerian National Petroleum Company Limited (NNPC).
Minister of Finance and Chairman of the Naira-crude sale implementation committee, Wale Edun, announced the development in a statement on Friday.
The decision follows the second post-commencement review meeting of the Implementation Committee held on October 10.
“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.
The Dangote refinery, with a capacity of 650,000 barrels per day, began operations on September 15, 2024. This move is expected to increase competition, improve supply conditions, and benefit consumers nationwide.
The Federal Government aims to establish a robust framework for local production and distribution of crude oil and refined products for domestic consumption in naira.
