Federal Government has taken a bold step to fully liberalize the oil and gas sector, following its approval for marketers to begin the lifting of premium motor spirit commonly known as fuel from the Dangote Refinery without going through the Nigerian National Petroluem Company Limited (NNPCL)
Minister of Finance and the Coordinating Minister of the Economy and Wale Edun issued who the approval in a statement on Friday, explained that the decision was a directive from the Federal Executive Council (FEC) and the implementation of the new naira-based sales mechanism.
“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,” the minister who chairs", he stated
“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.
”With the move, marketers can now negotiate commercial terms directly with the refineries which the minister said will help in “fostering a more competitive market environment and enabling a smoother supply chain for petroleum products”.
Edun who is also Chairman of the Presidential Implementation Committee on the Sales of Crude Oil and Refined Products in Naira, said in the committee’s meeting on October 10, it also agreed that the commencement of local production of PMS will be a game changer for the industry.
“This transition is expected to enhance efficiency in product availability and stabilize market conditions for the benefit of all Nigerians,” the minister said.
He assured the committee is ready to provide clarity regarding changes in the market.
“We are committed to providing clarity on this development and will continue to engage with stakeholders to ensure a seamless transition process,” he assured.
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