NNPC confirmed as the sole buyer of petrol from Dangote Refinery. The agreement allows pricing control and stabilizes Nigeria’s currency.
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The Nigerian Federal Government has confirmed that the Nigerian National Petroleum Company Limited (NNPC) will serve as the exclusive buyer of Premium Motor Spirit (PMS) produced by the Dangote Refinery.
This announcement was made during a press briefing in Abuja by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.
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Marketers interested in purchasing petrol will have to do so via the NNPC’s trading company.
The government’s agreement with Dangote Refinery covers the supply of crude oil to the facility and the distribution of petrol and diesel.
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This development contradicts NNPC’s earlier statement that it would not be the sole distributor of the refinery’s products.
The arrangement allows the government to control fuel prices through its dealings with Dangote Refinery, and the distribution of petrol is set to begin on Sunday with an initial 25 million litres per day.
In an effort to stabilize the local currency, crude oil will be sold to the Dangote Refinery in naira, and the petrol will also be purchased in naira.
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This move is expected to reduce unnecessary transaction costs and improve the availability of petroleum products in Nigeria.
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Dangote refinery petrol supply
fuel pricing
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naira transactions
NNPC sole distributor
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Wale Edun announcement