The Federal Government has directed Dangote Refinery to supply petrol exclusively to the Nigerian National Petroleum Company Limited (NNPC). This move implies that interested marketers will have to purchase the product from NNPC through its trading company.
The agreement between the government and Dangote Refinery stipulates that NNPC will be the sole buyer of Premium Motor Spirit (PMS) from the refinery. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made this announcement at a press briefing in Abuja.
Dangote Refinery will commence the distribution of petrol to marketers on September 15, 2024, with an initial 25 million liters per day. The refinery will also supply diesel to any interested off-taker in naira. All associated regulatory costs will be paid in naira.
This development contradicts NNPC’s earlier statement that it does not intend to be the sole distributor of petrol produced by Dangote Refinery. The directive implies that the government can still control the pricing of the product as it would be based on the agreement between the government and the refinery.