Friday, October 11, 2024

Nigerian govt gives permission to marketers to lift fuel directly from Dangote refinery

The Federal Government has given permission to petroleum marketers to start lift petrol directly from the Dangote refinery.

 This approval was given via a statement signed by the Minister of Finance and Chairman of the Naira-crude sale implementation committee, Wale Edun,on Friday, October 11.

Edun was giving an update on the takeoff of crude purchase and product sales in naira transactions.

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.

“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.

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

Prior to this development, NNPCL acted as a middleman to the marketers and Dangote refineries until it opted out of the arrangement last week.

 

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