The Dangote Petroleum Refinery has commenced direct sales of Premium Motor Spirit (PMS), or petrol, to various oil marketers, bypassing the Nigerian National Petroleum Company Limited (NNPC). This shift comes as more marketers seek to purchase petrol directly from the refinery, while others continue to rely on imports. Recent reports indicate that four vessels carrying imported PMS recently docked at Nigerian seaports, with an estimated 123.4 million liters slated to bolster the country’s fuel supply.
According to a senior official at the Dangote refinery, marketers can now engage in direct transactions based on a willing-buyer, willing-seller framework. This marks a significant change from earlier expectations that NNPC would remain the sole purchaser of petrol from the facility. As the refinery ramps up production to meet high demand—currently focusing on ensuring that 53% of its crude oil is converted into petrol—marketers have begun transporting PMS directly from the plant.
While some oil dealers expressed concerns over the need for Dangote to sever ties with NNPC for immediate sales to commence, officials from the refinery confirmed that direct sales to marketers are indeed taking place. This deregulation aligns with the Federal Government’s recent announcement, allowing marketers to purchase PMS from local refineries, which is anticipated to enhance competition and improve market efficiency
