FG permits marketers to buy petrol directly from local refineries, ending NNPC monopoly
Abdullateef Fowewe
The Federal Government has granted permission to petroleum product marketers to purchase Premium Motor Spirit well called Petrol directly from local refineries.
This was disclosed in a statement on Friday by the Minister of Finance and Chairman of the Naira-Crude Sale Implementation Committee, Wale Edun.
This new order annulled the previous arrangement where the Nigerian National Petroleum Corporation served as the sole purchaser and distributor of PMS from the refineries.
The statement reads in part, “Following the directive of the Federal Executive Council (FEC) and the implementation of the new Naira-based sales mechanism, the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira, chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, held its second review meeting on Wednesday, October 10, 2024.
“New Direct Purchase Model: The most significant change under the new regime is that petroleum product marketers can now purchase PMS directly from local refineries. This marks a departure from the previous arrangement where the Nigerian National Petroleum Corporation (NNPCL) served as the sole purchaser and distributor of PMS from the refineries.”
However, with this latest order, marketers can now negotiate commercial terms directly with the refineries, fostering a more competitive market environment and enabling a smoother supply chain for petroleum products.
“This direct purchasing mechanism allows marketers to negotiate commercial terms directly with the refineries, fostering a more competitive market environment and enabling a smoother supply chain for petroleum products.
“Local Production of PMS: With the commencement of local PMS production, the market is better equipped to support these direct transactions. This transition is expected to enhance efficiency in product availability and stabilize market conditions for the the benefit of all Nigerians,” the statement added.
The Committee reiterated its commitment to providing clarity on this development, vowing that it will continue to engage with stakeholders to ensure a seamless transition process.
The federal government and nnpc have been engaging in this meandering maneuvers but have failed to hit the nail on the head: at what cost to Nigerians? The conversations have centred more in “making petrol available, etc.,” but they carefully avoid saying how much ee have to pay. These guys are simply worse than witches and wizards! They appear to be quite happy seeing their fellow citizens suffering. Its quite a pity.