*Olawale Edun, OFR, Minister for Finance and Coordinating Minister of the Economy, affirms the Federal Government has approved the new petrol 鈥榩urchase model鈥� to allow petroleum product marketers to buy Premium Motor Spirit 鈥榙irectly鈥� from Dangote Petroleum Refinery and other local refineries, to enhance efficiency in product availability, and stabilise market conditions for the benefit of all Nigerian consumers

Isola Moses | 绿帽献妻

Sequel to the Nigerian Government鈥檚 recent announcement to allow Dangote Petroleum Refinery and Petrochemicals Limited and other oil refiners in the West African country to buy crude in Naira, the Federal Executive Council (FEC) and the Implementation Committee of the new Naira-based sales mechanism have granted approval to oil marketers for direct purchase of fuel from the Dangote Petroleum Refinery, in Lagos.

绿帽献妻 reports the Federal Government said the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira, chaired by Mr. Olawale Edun, OFR, Honourable Minister for Finance and Coordinating Minister of the Economy, held its second review meeting Wednesday, October 10, 2024.

Some oil tankers loading petroleum products from the Dangote Petroleum Refinery Gantry at Ibeju-Lekki, in Lagos State

Edun, who doubles as the Chairman, Implementation Committee on the Sales of Crude Oil and Refined Products in Naira, disclosed the development in a statement he personally signed, titled, 鈥淯pdate On Direct Purchase Of PMS By Petroleum Product Marketers鈥�, and issued Friday, October 11 with major updates in the downstream petroleum sector of the Nigerian economy.

The Minister noted that the meeting focused on assessing the transition towards a deregulated market structure for Premium Motor Spirit (PMS), also called petrol, and addressed the change in the 鈥減urchasing model鈥� for petroleum product marketers in Nigeria.

Major updates on 鈥榙eregulated market structure鈥� for PMS, by Edun

According to Edun, Chairman of the Implementation Committee, revealed some of the key updates in the new arrangement include the 鈥淣ew Direct Purchase Model鈥� for petroleum product marketers.

The government also explained the most significant change under the new regime is that petroleum product marketers can now purchase PMS directly from local refineries.

The Minister also stated: 鈥淭his marks a departure from the previous arrangement where the Nigerian National Petroleum Company Limited (NNPCL) served as the sole purchaser and distributor of PMS from the refineries.

鈥淭his direct purchasing mechanism allows marketers to negotiate commercial terms directly with the refineries, fostering a more competitive market environment and enabling a smoother supply chain for petroleum products.鈥�

Edun as well listed another key update as 鈥淟ocal Production of PMS鈥�, stressing with the commencement of local PMS production, the market is better equipped to support these direct transactions.

鈥淭his transition is expected to enhance efficiency in product availability and stabilise market conditions for the benefit of all Nigerians.鈥�

The Minister asserted: 鈥淭he Committee recognises that there are questions and discussions regarding this change in the market structure.

鈥淲e are committed to providing clarity on this development and will continue to engage with stakeholders to ensure a seamless transition process.鈥�

With the government鈥檚 latest move, fuel marketers can now negotiate commercial terms directly with the oil refineries in Nigeria.

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