The Nigerian National Petroleum Company Limited (NNPC) remains the sole off-taker of Premium Motor Spirit (PMS) from the Dangote Petroleum Refinery, despite the Federal Government’s directive allowing other oil marketers to load PMS from the plant. This development has sparked concerns among stakeholders, as NNPC’s continued dominance may hinder competition and limit the benefits of the government’s directive.
Recall that, on October 11, 2024, the Federal Government announced that oil marketers could negotiate directly with Dangote refinery to purchase petrol, eliminating NNPC’s intermediary role.
However, NNPC’s agreement with Dangote refinery has yet to be terminated and officials from both organizations have not disclosed when the agreement will end. The Independent Petroleum Marketers Association of Nigeria (IPMAN) revealed that NNPC’s sole off-taker status remains unchanged after meeting with Dangote refinery officials.
Industry analysts predict that the termination of the agreement between NNPC and Dangote refinery could lead to increased competition and potentially lower prices for PMS.
Oil marketers are eagerly awaiting the termination of the agreement, which would enable them to purchase PMS directly from Dangote refinery. This development is expected to increase competition, potentially leading to lower prices for consumers.
As the situation unfolds, industry stakeholders will be watching closely for updates. The Nigerian government’s commitment to liberalizing the petroleum market will be tested by its ability to balance the interests of NNPC, Dangote refinery, and other stakeholders.
The resolution to this situation will have far-reaching implications for Nigeria’s petroleum industry, impacting consumers, marketers, and the economy at large.
