Dangote Refinery launches direct petrol sales to marketers
The Dangote Petroleum Refinery has commenced direct sales of Premium Motor Spirit (petrol) to select oil marketers, bypassing the Nigerian National Petroleum Company Limited.
Sources indicate that while many oil marketers are working to purchase the product directly from the refinery, others continue to rely on imports. Hundreds of millions of liters of imported PMS are expected to arrive in Nigeria within two weeks.
This follows reports of at least four vessels carrying imported PMS docking at various seaports along the nation’s borders between October 18 and October 20.
A document from the Nigerian Port Authority revealed that approximately 123.4 million liters of Premium Motor Spirit (PMS) have been delivered to two seaports to enhance fuel supply across the country.
READ ALSO: Dangote refinery to get 400,000 barrels of crude daily as Naira-for-crude deal begins
This development aligns with earlier reports indicating that oil dealers plan to import petrol to supplement the supply from the $20 billion Dangote refinery.
As major oil marketers continue to import petrol, others have begun sourcing Premium Motor Spirit (PMS) directly from the Lekki-based refinery.
A senior official at the refinery stated that marketers are now permitted to engage in direct transactions with the company on a willing-buyer, willing-seller basis.
“Marketers are already coming to the refinery to lift PMS. They are lifting directly from the refinery, not through a third party,” stated a reliable official who spoke on condition of anonymity due to lack of authorization to discuss the matter.
The source, who could not disclose the price at which marketers were acquiring the product, noted that oil dealers would not approach the refinery if the price were not favorable to them.
“We have reached agreements with some of the marketers, and more are still ongoing. I don’t know the exact price, but if the price isn’t good, the marketers wouldn’t be coming to us,” the official stated.
He maintained that conditions are improving, especially as the Federal Government has begun supplying crude to the facility.
Another official at the refinery showed one of our correspondents trucks from some marketers loading the product directly from the plant without going through NNPC.
“Some of the trucks you saw there today were from marketers purchasing the product directly from Dangote, without recourse to NNPC. So the direct sale has started,” the source stated.
The official explained that due to the high demand for petrol in Nigeria and other countries, the refinery is focusing on ensuring that 53 percent of its PMS production comes from its crude oil supplies.
“This could be reviewed in the future if the demand for other finished products increases more than the demand for petrol. But right now, about 53 percent of our crude is used for petrol production, while other products account for the remaining percentage,” the official stated.
When asked if marketers had begun direct purchases of petrol from Dangote without going through NNPC, a notable major marketer in the country confirmed this.
“Yes, everyone is in the process. It was indicated that this would happen soon, and it is a normal business transaction,” the source stated.
This stands in contrast to claims from some quarters that the refinery would not be able to sell petrol to marketers unless its deal with NNPC is terminated.
Proofreading by Uchechi Ojo, Sub-editor at Neptune Prime.
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