According to reports, Major oil marketers are set to begin direct purchases of Premium Motor Spirit (petrol) from the Dangote Petroleum Refinery starting between Thursday and next week, following the Nigerian National Petroleum Company (NNPC) Limited’s exit as the sole off-taker for the product from the $20 billion facility. This development has been confirmed by multiple sources from NNPC and the Major Energies Marketers Association of Nigeria.
Reports also suggest that the Nigerian Midstream and Downstream Petroleum Regulatory Authority may have released new petrol prices that exceed current pump prices across the country, although NMDPRA spokesman George Ene-Ita did not respond to inquiries about this.
The shift away from NNPC as the exclusive off-taker indicates a complete withdrawal of petrol subsidies by the Federal Government. Previously, NNPC subsidized Dangote petrol at a daily cost of approximately N3.3 billion, which totaled around N99 billion monthly. By allowing other marketers to purchase directly from the Dangote refinery, the government stands to save significantly.
The Federal Government had initially mandated that only NNPC would off-take petrol from Dangote refinery. However, recent adjustments now permit other players in the downstream market to participate, suggesting a major change in the operational landscape for petrol distribution in Nigeria.
SOURCE: News Hub Creator
