The Dangote Petroleum Refinery has started direct supply of Premium Motor Spirit (PMS) to oil marketers, bypassing the Nigerian National Petroleum Company Limited (NNPC).
- This move allows marketers to procure petrol directly from the Lekki-based facility, streamlining the distribution process.
- Several oil vessels carrying imported PMS are expected to arrive in Nigeria within two weeks.
- Four vessels are set to deliver 123.4 million litres of PMS at major seaports between October 18-20.
- This influx of imported fuel aims to enhance petrol availability across the country.
- Sources from the refinery indicate that marketers are engaging in direct transactions based on a willing-buyer, willing-seller model.
- This approach facilitates competitive pricing, with marketers loading petrol directly from the refinery.
The Dangote Petroleum Refinery has forged agreements with various marketers to ensure mutually beneficial terms, with an official stating that marketers will only approach the facility if the pricing remains competitive. Currently, the refinery produces 53% of its output as petrol, with plans to adjust this ratio based on market demand for other petroleum products, showcasing its flexibility to respond to changing market needs.This direct supply arrangement signifies a notable shift in Nigeria’s petroleum distribution landscape, bringing several benefits, including:
- Improved fuel availability
- Competitive pricing
- Reduced reliance on NNPC
- Increased efficiency in distributionAs the
Dangote Petroleum Refinery continues to ramp up production, its influence on Nigeria’s petroleum sector is anticipated to grow. With its strategic location and adaptability to market demands, the refinery is poised to play a crucial role in fulfilling the country’s fuel needs.
