The Dangote Petroleum Refinery has begun supplying Premium Motor Spirit (PMS), commonly known as petrol, directly to oil marketers, bypassing the Nigerian National Petroleum Company Limited (NNPC).
It was revealed that while many marketers are keen to purchase fuel directly from the refinery, others are importing the product. In fact, hundreds of millions of litres of imported PMS are expected to arrive in Nigeria within two weeks.
Earlier reports indicated that four vessels carrying imported petrol arrived at Nigerian seaports between October 18 and 20. Documents obtained from the Nigerian Ports Authority showed that 123.4 million litres of petrol were unloaded at two seaports, bolstering the nation’s fuel supply. This aligns with previous reports that oil dealers were set to import PMS to supplement production from the Dangote refinery, which was built at a cost of $20 billion.
While major marketers are importing fuel, others have started lifting PMS directly from the Dangote facility in Lekki. According to a senior refinery official, marketers are now conducting direct transactions with the company on a “willing buyer, willing seller” basis, eliminating third-party involvement. The official noted that marketers were showing interest due to favorable pricing, though the exact price was undisclosed.
Agreements have already been reached with some marketers, and more discussions are underway. The official emphasized that 53% of the refinery’s crude oil is allocated for petrol production, driven by high demand in Nigeria and other regions. The Federal Government’s supply of crude to the refinery is also helping improve operations.
Contrary to some reports suggesting the refinery could not sell petrol unless its deal with NNPC was terminated, a notable marketer confirmed that direct purchases from the refinery have begun. A source at the refinery confirmed that trucks from marketers were already loading fuel without going through NNPC.
This development follows a statement by the Technical Subcommittee on Domestic Sale of Crude Oil in Local Currency, which announced on October 11 that marketers could now lift petrol directly from local refineries, promoting competition and market efficiency.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) is also in talks with Dangote, discussing logistics and modalities for product lifting. Though IPMAN had earlier expressed concern about commencing direct purchases unless the refinery’s agreement with NNPC ended, Dangote officials have confirmed that some marketers have already begun receiving petrol directly from the plant.
Since the Dangote refinery began selling PMS on September 15, there has been debate over the price. NNPC claimed it was purchasing the product at N898/litre, which the refinery labeled as misleading. The committee responsible for setting the price of PMS is yet to make an official announcement, as of October 22.
