Ola Williams Abuja –
In a significant move to alleviate Nigeria’s petrol scarcity, the Nigerian National Petroleum Company (NNPC) has granted oil marketers the green light to purchase petrol directly from the Dangote Refinery.
According to a statement from the NNPC, “The Dangote Refinery, along with other local refineries, is now permitted to sell petrol to any marketer as it operates in a free market.” The NNPC clarified, however, that it would only act as the sole distributor for Dangote’s petrol if the prices exceed those of the prevailing market rates.
This decision follows NNPC’s recent announcement that it is not the exclusive off-taker for Dangote or any other local refinery, thus allowing independent marketers to lift petrol directly from Dangote’s 650,000 bpd-capacity facility.
Despite the launch of Dangote’s petrol into the Nigerian market on September 3, 2024, marketers had faced challenges in accessing the product due to ongoing discussions between the refinery’s management and the NNPC. The NNPC had anticipated starting product liftings on September 15, 2024, based on the refinery’s schedule.
During the launch, Dangote had indicated that the NNPC, holding a 7% stake in the refinery, would be the exclusive distributor. However, the NNPC refuted this, asserting that “refineries, including Dangote, are free to engage with any buyers in a deregulated market.”
The NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, responded to concerns from the Muslim Rights Concern (MURIC) about potential price manipulation, stating that “the NNPC has no intention of becoming the sole distributor for any refinery in a free market.”
He emphasized that the NNPC will only act as the off-taker if market prices justify it, otherwise, refineries are free to sell to any willing buyer.
