Price hike: Marketers get FG’s permission to lift fuel directly from Dangote Refinery

At last, petroleum marketers have been given permission by the Federal Government (FG) to lift petrol directly from Dangote Refinery.

With the development, marketers would no longer go through the Nigerian National Petroleum Company Limited (NNPCL) to buy fuel from the refinery.

Also, the NNPC would no longer be the sole off-taker of the Dangote fuel, nor be in the position to fix fuel prices which has been flaked as illegal.

Also with the development, the prices of fuel hiked by the NNPC on Tuesday across different locations in the country will drop.

In a statement on Friday, the Minister of Finance and Chairman of the Naira-crude Sale Implementation Committee, Wale Edun, gave an update on the takeoff of crude purchase and product sales in naira transactions.

“Moving forward, petroleum product marketers are now able to purchase PMS directly from local refineries without the intermediary role of NNPC. Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency,” the statement said.

Reportedly, the Implementation Committee chaired by Edun was said to have held its second post-commencement review meeting on October 10, to evaluate the progress of the Crude Oil and Refined Products Sales in naira initiative.

Edun said: “The committee is pleased to report a successful transition of operations in line with the directive issued by the Federal Executive Council. This directive has established a robust framework for local production and distribution of crude oil and refined products for local consumption in naira.”

“With this mechanism now in full operation, along with the commencement of local production, we are well positioned to transition to a fully deregulated market for all petroleum products,” he added.

The minister expressed the FG’s confidence that, on the long run, the measures would create better market opportunities for the benefit of the Nigerian populace.

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