The Federal Government has approved petroleum marketers to lift premium motor spirit (PMS), commonly known as fuel, directly from the Dangote Refinery, bypassing the Nigerian National Petroleum Company Limited (NNPCL). This decision, announced by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, follows a directive from the Federal Executive Council (FEC) as part of the implementation of a new naira-based sales mechanism for petroleum products.

Under the new system, marketers can negotiate directly with local refineries to purchase PMS. This marks a significant shift from the previous arrangement where the NNPCL was refined products’ sole purchaser and distributor. Regarding the development, Edun, who also heads the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira, stated that this transition aims to create a more competitive market environment and ensure a smoother supply chain for petroleum products.

“This is a significant move that is expected to enhance product availability and stabilize market conditions for the benefit of all Nigerians,” said Edun during a committee meeting held on October 10.

The decision also signals the government’s commitment to supporting local production as the Dangote Refinery begins the local manufacturing of PMS. This is expected to be a game changer for the petroleum industry, increasing efficiency and offering marketers greater flexibility.

Edun further assured that the government is committed to clarifying the changes and will continue to engage with stakeholders to ensure a smooth transition. “We are dedicated to ensuring a seamless transition and will offer clarity as the market adapts to this new framework,” he added.

The approval has been welcomed by petroleum marketers across the country, who have long advocated for direct access to the Dangote Refinery located in Lagos.