The Dangote Petroleum Refinery has started supplying Premium Motor Spirit (PMS), commonly known as petrol, directly to some oil marketers, bypassing the Nigerian National Petroleum Company Limited (NNPC).
Reports suggest that more marketers are now opting to purchase petrol directly from the refinery, while others continue to rely on imports. Hundreds of millions of liters of imported petrol are expected to arrive in Nigeria in the coming weeks.
According to earlier reports by The PUNCH, between October 18 and October 20, at least four vessels carrying imported petrol docked at Nigerian ports, unloading about 123.4 million liters of PMS at two seaports to support fuel supply across the country. This influx of imported fuel, alongside the output from the $20 billion Dangote refinery, is providing additional supply to the Nigerian market.
Marketers have already begun lifting petrol directly from the Dangote refinery in Lekki, Lagos, marking a significant shift in Nigeria’s fuel distribution landscape. A senior official at the refinery explained that this direct-purchase arrangement operates on a willing-buyer, willing-seller basis, allowing oil marketers to bypass third-party suppliers and engage directly with Dangote.
“Marketers are coming to the refinery to lift PMS directly, and agreements have been made with some marketers. If the price wasn’t competitive, they wouldn’t be coming to us,” the official said, indicating that Dangote’s pricing has been attractive enough to draw interest.
The official further clarified that around 53% of the refinery’s crude oil supply is currently dedicated to PMS production due to the high demand for petrol in Nigeria and other markets. However, this proportion may be adjusted in the future if the demand for other refined products increases.
Another source confirmed that direct sales had already commenced, saying, “Some of the trucks you saw today were from marketers purchasing directly from Dangote, without involving the NNPC.”
This development follows earlier claims that the NNPC would be the sole off-taker of petrol from the Dangote refinery, starting from September 15. However, a recent update from the Technical Subcommittee on Domestic Sale of Crude Oil in Local Currency, led by Finance Minister Wale Edun, confirmed that marketers are now allowed to purchase petrol directly from local refineries, promoting competition and enhancing market efficiency.
While the Independent Petroleum Marketers Association of Nigeria (IPMAN), led by Vice President Hammed Fashola, is still discussing logistics for lifting PMS from Dangote, refinery officials confirmed that direct sales to some marketers are already underway.
Additionally, the refinery has refuted claims that it sold petrol to NNPC at N898 per liter when sales began in mid-September, calling such reports misleading. The official price of the product will be announced by the naira-for-crude committee, though no announcement has been made as of October 22.
