Direct Fuel Access: FG Grants Marketers Permission to Source Petrol from Dangote Refinery

The Federal Government has approved a significant change allowing petroleum marketers to lift petrol directly from the Dangote refinery, eliminating the need to go through the Nigerian National Petroleum Company Limited (NNPC). This decision marks a pivotal shift in the fuel distribution landscape, confirming that the NNPC will no longer hold the exclusive role as the off-taker for Dangote’s fuel.

In a recent statement, Finance Minister and Chairman of the Naira-crude sale implementation committee, Wale Edun, shared updates on the commencement of crude oil purchases and product sales using naira transactions. The Implementation Committee, under Edun’s leadership, conducted its second review meeting on October 10 to assess the progress of the initiative focused on selling crude oil and refined products in naira.

The committee expressed satisfaction with the operational transition aligned with directives from the Federal Executive Council. This framework aims to support local production and distribution of crude oil and refined products for domestic consumption in naira.

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“Now that this mechanism is fully operational and local production has commenced, we are positioned to transition to a fully deregulated market for all petroleum products,” the statement outlined.

Moving forward, petroleum marketers can purchase Premium Motor Spirit (PMS) directly from local refineries, free from the NNPC’s intermediary role. This change encourages marketers to negotiate direct purchases with refineries, fostering competition and enhancing market efficiency.

Edun emphasized that the government remains optimistic that these measures will ultimately create improved market conditions, benefiting all Nigerians in the long run.