Moving Away from Subsidy: Major Oil Marketers to Purchase Fuel Directly from Dangote Refinery
Major oil marketers are set to start purchasing Premium Motor Spirit (PMS) directly from the Dangote Petroleum Refinery, stepping away from the Nigerian National Petroleum Company Limited (NNPCL) as the sole off-taker. This shift marks a significant change in the downstream sector, allowing other players to buy fuel directly from the $20bn Dangote refinery.
While unconfirmed reports suggest a possible increase in petrol prices, the move by NNPC to cease being the sole off-taker implies the removal of subsidy on petrol, streamlining the market and opening up opportunities for various stakeholders.
With NNPC no longer exclusively purchasing Dangote petrol, the national oil company may save significantly on subsidies. This change represents a shift towards market-driven fuel pricing, signaling a new era in the country’s fuel distribution system.
As major marketers gear up to source petrol directly from the Dangote refinery, consumers should expect changes in fuel prices reflecting the new market dynamics. The transition away from subsidy marks a crucial moment in Nigeria’s fuel industry, ushering in a more competitive and transparent marketplace.