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

According to a Friday statement by the Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, the move followed 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”.

The minister added that in the committee’s meeting on October 10, it also agreed that the commencement of local production of PMS will be a game changer for the industry.

“This transition is expected to enhance efficiency in product availability and stabilize market conditions for the benefit of all Nigerians,” Edun said.

FEDERAL MINISTRY OF FINANCE ABUJA

PRESS STATEMENT

UPDATE ON DIRECT PURCHASE OF PMS BY PETROLEUM PRODUCT MARKETERS

Following the directive of the Federal Executive Council (FEC) and the implementation of the new Naira-based sales mechanism, the Implementation Committee on the… pic.twitter.com/sTg7oI8xWf

— Federal Ministry of Finance (@FinMinNigeria) October 11, 2024