The Federal Government and Dangote Refinery have finalized an agreement to commence the supply of petrol, with distribution set to begin tomorrow, Sunday, September 15. This comes after both parties reached an understanding on pricing and supply arrangements, a major step toward addressing Nigeria’s fuel shortage.
According to Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS) and member of the Presidential Committee on the Sale of Crude Oil and Refined Products, the Nigerian National Petroleum Company Limited (NNPCL) will serve as the sole off-taker of petrol from the Dangote Refinery. Other marketers will access the product through the NNPCL.
Adedeji revealed that NNPCL will begin supplying 385,000 barrels of crude oil per day to the refinery from October 1, 2024, in exchange for petrol and diesel, both to be paid for in Naira. He also confirmed that the Dangote Refinery will supply both Premium Motor Spirit (PMS) and diesel to the domestic market, with diesel being available to any interested buyer, while NNPCL will handle all PMS sales.
“All agreements have been finalized, and the loading of the first batch of PMS from the Dangote Refinery will commence on Sunday, September 15,” Adedeji announced during a press briefing in Abuja.
The move is expected to ease Nigeria’s fuel scarcity and allow the government to maintain subsidy payments on petrol. Diesel, however, will be sold in Naira to other buyers, while NNPCL will remain the exclusive distributor of PMS.
