Only NNPCL can buy petrol from Dangote Refinery –FG…loading of first batch begins Sep

The Federal Government (FG) has declared that only the Nigerian National Petroleum Company Limited (NNPCL) will be the sole buyer of petrol from Dangote Refinery.

The FG, however, said that interested marketers would have to buy the product from the national oil firm through its trading company.

This was disclosed at a press briefing in Abuja on Friday by the Minister of Finance and the Coordinating Minister of the Economy, Wale Edun.

This development is, however, contrary to NNPC’s claim in a statement early this month that it would not be the sole distributor of Dangote Refinery petrol.

With the directive, it is evident that the government will still control the pricing of the product as it would be based on the agreement between it (the FG) and the refinery.

The directive by the FG is against the backdrop of agreement reached with the Dangote Refinery management on the commercial terms for the supply of crude oil to the refinery and the off-taking and distribution of petrol and diesel from the company.

The minister who was represented by the Executive Chairman of the Federal Inland Revenue Service, Dr Zacceus Adedeji, also announced that Dangote Refinery would begin distribution of petrol to marketers on Sunday, September 15, with an initial 25 million litres per day.

“I am glad to announce that all agreements have been put in place and the loading of the first batch of PMS as already announced by NNPCL will commence on Sunday, September 15, 2024, and from October 1, NNPC will commence supply of crude oil to Dangote Refinery to be paid for in naira. In return, Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market to be paid for in naira,” the minister said.

“But for now, PMS will only be sold to NNPC. NNPC will then sell to various marketers,” he added.

Edun also said that diesel would be sold in naira by Dangote Refinery to any interested off-taker.

While also speaking on the approval to sell crude oil to local refineries in naira and purchase petrol from the refiners in the local currency, Edun said the decision would reduce pressure on the local currency.

The minister said the move would also eliminate unnecessary transaction costs and improve the availability of petroleum products in the country.

Recall that on July 29, the Federal Executive Council approved a proposal by President Bola Ahmed Tinubu directing the NNPC to sell crude oil to the Dangote Refinery and other refineries in naira.