The Nigerian Government has announced that oil marketers can now negotiate directly with the Dangote refinery for petrol purchases, bypassing the Nigerian National Petroleum Company Limited (NNPCL).
This decision follows complaints from the Independent Petroleum Marketers Association of Nigeria (IPMAN), which criticised the NNPCL for selling petrol at over N1,000 per litre, despite purchasing it from Dangote at under N900 per litre.
Finance Minister Wale Edun confirmed this change while updating on the naira-crude sale initiative.
According to him, allowing oil marketers to negotiate directly with the Dangote Refinery will help streamline the supply chain, reduce bottlenecks, and encourage a more competitive market. He noted that this move is expected to benefit consumers through better pricing and availability of petrol.
“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,” he said.