The Dangote Petroleum Refinery has started supplying Premium Motor Spirit (PMS), popularly known as petrol, directly to oil marketers, bypassing the Nigerian National Petroleum Company Limited (NNPC). Marketers are now lifting the product directly from the Lekki-based refinery on a "willing-buyer, willing-seller" basis, following agreements with the company.
This development comes as oil marketers are also importing PMS to supplement the refinery’s supply. According to data from the Nigerian Port Authority, about 123.4 million litres of imported petrol are set to arrive at Nigerian seaports by the end of October.
Refinery officials confirmed that several marketers have already begun loading trucks with petrol directly from the facility. This is part of efforts to address high demand both in Nigeria and other countries, with the refinery dedicating 53% of its crude oil supplies to PMS production.
Although there were initial concerns that the NNPC would be the sole off-taker of petrol from the refinery, recent statements from government authorities, including Finance Minister Wale Edun, have clarified that marketers can now purchase PMS directly from local refineries without NNPC's intermediary role.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has also begun discussions with Dangote Industries to establish the logistics for lifting petrol from the refinery. However, IPMAN noted that full engagement will occur once the refinery finalizes its arrangement with the NNPC.
The market has been fully deregulated, allowing competition among marketers to enhance market efficiency. This direct sale process marks a significant shift in Nigeria’s fuel supply dynamics, potentially leading to better market efficiency and pricing.
