Dangote Refinery Begins Direct Fuel Supply to Independent Marketers
In a significant shift from previous arrangements, the Dangote Petroleum Refinery has commenced direct supply of Premium Motor Spirit (PMS), commonly known as petrol, to independent marketers, bypassing the Nigerian National Petroleum Company Limited (NNPC) as an intermediary.
Industry sources confirm that marketers are now pursuing two parallel strategies: establishing direct purchasing relationships with the Dangote facility while simultaneously maintaining import channels. Reports indicate substantial fuel shipments are expected to reach Nigerian ports within the next fortnight.
As reported earlier by ProbitasReport, the maritime sector saw increased activity with four PMS-carrying vessels docking at various national seaports between October 18-20. Port authority documentation revealed approximately 123.4 million liters of fuel were delivered, aimed at bolstering national fuel availability.
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Market dynamics are evolving rapidly, with several marketers already initiating direct transactions at the Lekki-based facility. A senior refinery official, speaking anonymously, confirmed that marketers can now engage in direct business dealings based on mutually agreeable terms.
"We're witnessing active participation from marketers who are lifting fuel directly from our facility," the source revealed. "These transactions are happening without third-party involvement." While specific pricing details weren't disclosed, the official noted that market response indicates favorable terms for participants.
The refinery's operations have reportedly improved since receiving crude oil supplies from the federal government. Currently, the facility dedicates approximately 53% of its crude processing capacity to PMS production, reflecting the high domestic and regional demand for petrol.
This development aligns with recent government policy shifts. The Technical Subcommittee on Domestic Sale of Crude Oil in Local Currency, led by Finance Minister Wale Edun, recently announced that marketers could purchase directly from local refineries, promoting market competition and efficiency.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has already initiated discussions with Dangote Industries. Following a meeting between IPMAN's Vice President Hammed Fashola and Dangote Industries' Vice President Devakumar Edwin, both parties expressed optimism about future collaboration.
The pricing structure remains a point of discussion. While the NNPC previously quoted N898/litre for their purchases, the refinery maintains that official pricing announcements will come through the naira-for-crude committee, which has yet to make a formal declaration as of October 22.
This development marks a significant step toward a more liberalized fuel market in Nigeria, potentially impacting fuel availability and pricing dynamics across the country.
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