The Dangote Petroleum Refinery has commenced the direct sale of Premium Motor Spirit (PMS), commonly known as petrol, to oil marketers, effectively bypassing the Nigerian National Petroleum Company (NNPC) Limited.
This development signals a major shift in Nigeria’s fuel distribution landscape, as marketers increasingly opt to purchase fuel directly from the Lekki-based refinery.
According to insider reports, the refinery operates on a willing-buyer, willing-seller model, which has already attracted a number of oil marketers. This move comes as other marketers continue to rely on fuel imports, with approximately 123.4 million litres of imported PMS expected to arrive at Nigerian ports between October 18 and 20.
“Marketers are already coming to the refinery to lift PMS. They are lifting directly from the refinery, not through a third party,” a source within the refinery disclosed. The source, who spoke on the condition of anonymity, also indicated that marketers would only engage in direct purchases if the pricing was favorable.
The shift follows the Federal Government’s decision to supply crude oil to the Dangote Refinery, which has now ramped up operations to produce 53% of its crude output as PMS to meet high demand. Officials at the facility confirmed that several marketers’ trucks were seen loading products directly from the refinery.
“Yes, everyone is in the process. This was advised that it would happen soon and is a normal business transaction,” a top official of a major oil marketing company confirmed, affirming that marketers are now able to lift products without relying on the NNPC as an intermediary.
This development counters earlier claims that the refinery would not be able to sell directly to marketers unless its deal with the NNPC was terminated. The refinery had initially announced in September that the NNPC would serve as the sole off-taker of its petrol, but this arrangement changed following an October 11 announcement by the Technical Subcommittee on Domestic Sale of Crude Oil in Local Currency.
The committee, led by the Minister of Finance, Wale Edun, stated that going forward, petroleum marketers could purchase PMS directly from local refineries on mutually negotiated commercial terms. This, the committee argued, would enhance competition and improve market efficiency in the deregulated sector.
Meanwhile, discussions are ongoing between the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Dangote Refinery. Hammed Fashola, Vice President of IPMAN, recently met with Dangote Industries Vice President Devakumar Edwin in Lagos to discuss logistics and modalities for lifting petrol. Fashola described the meeting as “fruitful,” noting that IPMAN has agreed to partner with the refinery.
However, IPMAN also emphasized that it could not commence lifting until the Dangote Refinery fully ended its contract with the NNPC. Despite these concerns, refinery officials maintain that direct sales to marketers are already underway.
The refinery, which began selling PMS on September 15, initially faced claims from the NNPC that it was selling petrol at N898 per litre. The Dangote Refinery dismissed this claim as “mischievous,” stating that the naira-for-crude committee would eventually announce the price of its PMS. As of October 22, the committee had not yet disclosed the official price.
This direct sales arrangement marks a new chapter in Nigeria’s fuel distribution, potentially reducing the influence of the NNPC and giving marketers more autonomy in sourcing their products.
