In a significant development, the Federal Government has announced that the Dangote Refinery will sell petrol exclusively to the Nigerian National Petroleum Company Limited (NNPC). This decision was made as part of the commercial terms agreed upon between the government and the refinery for the supply of crude oil and the off-taking and distribution of petrol and diesel.
The Minister of Finance, Wale Edun, revealed that interested marketers would need to purchase the product from NNPC through its trading company. This arrangement implies that the government will still have control over the pricing of petrol, as it will be based on the agreement between the government and the refinery.
The Dangote Refinery is set to commence the distribution of petrol to marketers on Sunday, starting with an initial 25 million liters per day. The refinery will also supply diesel to interested buyers in naira, and all associated regulatory costs will be paid in the local currency.
This development is expected to reduce pressure on the naira, eliminate unnecessary transaction costs, and improve the availability of petroleum products in the country.
The government’s decision to allow the sale of crude oil to local refineries in naira and purchase petrol from the refiners in the local currency is a significant step towards promoting economic growth and stability.
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