October 11, 2024

The Federal Government has given approval for marketers to begin the lifting of premium motor spirit, PMS, from the Dangote Refinery without going through the Nigerian National Petroluem Company Limited (NNPCL).

In a statement on Friday by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, this is following a directive from the Federal Executive Council (FEC) and the implementation of the new naira-based sales mechanism.

“New Direct Purchase Model: The most significant change under the new regime is that petroleum product marketers can now purchase PMS directly from local refineries,” the minister who chairs the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira said.

“This marks a departure from the previous arrangement where the Nigerian National Petroleum Corporation (NNPCL) served as the sole purchaser and distributor of PMS from the refineries.”

“With the move, marketers can now negotiate commercial terms directly with the refineries which the minister said will help in “fostering a more competitive market environment and enabling a smoother supply chain for petroleum products”.