NNPC Still Sole Dangote Petrol Buyer – Marketers

The Nigerian National Petroleum Company Limited (NNPCL) continues to operate as the sole off-taker of Premium Motor Spirit (PMS), commonly known as petrol, from the Dangote Petroleum Refinery, despite recent directives from the Federal Government allowing other oil marketers to begin loading petrol from the plant.

On Wednesday, oil marketers confirmed that NNPC will retain its exclusive off-taker status for PMS from the $20 billion Lekki-based refinery until its existing agreement with Dangote refinery concludes.

However, specifics regarding the duration of this agreement remain unclear, as officials from both NNPC and the Dangote refinery have not provided information on when it will end.

This development follows an announcement made on October 11, 2024, by the Federal Government through a statement from the finance ministry, which declared that oil marketers were now permitted to negotiate the purchase of petrol directly from the Dangote refinery, bypassing the NNPC.

It stated in the statement, “Moving forward, petroleum product marketers are now able to purchase PMS directly from local refineries without the intermediary role of NNPC. Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency.”

However, after meeting with officials of the Dangote refinery on Tuesday, members of the Independent Petroleum Marketers Association of Nigeria revealed that NNPC was still the sole off-taker of Dangote petrol pending the termination of an agreement between Dangote and NNPC.

In a notice to IPMAN members in the Western Zone, issued by the Zonal Chairman, South-West, Dele Tajudeen, the association said, “The IPMAN National Vice President, Zonal Chairman of Western Zone, IPMAN members, and PTD Zonal Chairman met with the Vice President of Dangote Group and many other notable staff members of the Dangote refinery yesterday, October 15, 2024.

“We had a very useful and fruitful discussion on the direct purchase of products from the Dangote refinery. The Vice President of Dangote confirmed that the Minister of Finance/ Coordinating Minister of the Economy, and the Minister of Petroleum Resources have directed them to commence sales of products to marketers who have duly registered with the refinery, but they are still having a pending agreement with NNPC Ltd which still subsist.

“Until and when the agreement is terminated by either party, the direct sales will still be on hold.”

The notice stated that the IPMAN National Executive Council would meet in Abuja on Wednesday “in that respect.”

It added, “In view of this, marketers who are yet to officially register as IPMAN members should do so without wasting time as such marketers will not benefit from this opportunity when we eventually commence lifting from the Dangote refinery.”