Dangote Refinery to Supply Petrol Exclusively to NNPC

The Presidential Committee on the Sale of Crude Oil and Refined Products has announced that the Dangote Refinery will supply Premium Motor Spirit (PMS), commonly known as petrol, exclusively to the Nigerian National Petroleum Company Limited (NNPCL).

Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS) and a member of the committee, made the announcement during a press briefing in Abuja on Friday. “I am pleased to announce that all agreements have been finalized, and the first batch of PMS will be loaded starting Sunday, September 15,” Adedeji said.

Additionally, NNPC will begin supplying crude oil to Dangote Refinery on October 1, with payments to be made in naira. In exchange, Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market.

Adedeji clarified that for now, PMS will only be sold to NNPC, which will then distribute it to various marketers. Minister of Finance Wale Edun confirmed this position during a separate press conference.

This agreement streamlines fuel distribution in Nigeria but raises concerns about market access for independent fuel marketers. The development contradicts NNPC’s earlier statement that it would not be the sole distributor of petrol produced by the Dangote Refinery.

The Dangote Refinery, with a capacity of 650,000 barrels, began refining petrol earlier this month and will start distribution soon.

NNPC’s trading arm will serve as the intermediary for independent marketers seeking to purchase petrol. The Federal Executive Council authorized the sale of crude oil to the Dangote refinery in naira.