By Ayomide Otitoju
The Nigerian National Petroleum Company Limited (NNPC) continues to be the sole off-taker of Premium Motor Spirit (PMS), commonly known as petrol, from the Dangote Petroleum Refinery, despite a recent directive from the Federal Government allowing other oil marketers to start sourcing PMS directly from the refinery.
Oil marketers disclosed on Wednesday that NNPC’s exclusive rights to lift petrol from the $20 billion Lekki-based refinery would remain in place until its existing agreement with the Dangote Refinery expires. However, they did not specify when the agreement would end. Officials from both NNPC and the Dangote Refinery declined to comment on the duration of the contract.
On October 11, 2024, the Federal Government, through the Ministry of Finance, announced that oil marketers could now negotiate the purchase of petrol directly from local refineries, including Dangote, without the involvement of NNPC. The ministry’s statement encouraged marketers to engage refineries directly under mutually agreed commercial terms, aimed at fostering competition and improving market efficiency.
“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,” the statement read.
However, following a meeting with officials of the Dangote Refinery on Tuesday, members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) confirmed that NNPC remained the sole off-taker of petrol until the termination of its agreement with Dangote. The outcome of the meeting was communicated to IPMAN members in the Western Zone through a notice issued by the Zonal Chairman, South-West, Dele Tajudeen.
In the notice, Tajudeen stated, “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 other senior staff of the Dangote Refinery on October 15, 2024. We had fruitful discussions on the direct purchase of products from the refinery. However, the Vice President of Dangote confirmed that the refinery is still bound by an agreement with NNPC Ltd.”
The notice further explained that until the agreement between NNPC and Dangote is terminated by either party, direct sales to independent marketers would remain on hold.
Tajudeen also announced that IPMAN’s National Executive Council would meet in Abuja on Wednesday to discuss the development. He urged marketers who have not yet registered with IPMAN to do so promptly to benefit from future opportunities to lift products from the Dangote Refinery.
Meanwhile, major oil marketers confirmed they were still lifting PMS from the Dangote Refinery under the terms of the existing agreement between NNPC and the refinery. “There is a subsisting deal between NNPC and Dangote Refinery, and we major marketers are lifting PMS using a proforma invoice (PFI),” a dealer, speaking on condition of anonymity, revealed.
Both NNPC and Dangote Refinery have yet to issue any official statements on the matter.
