The Nigerian National Petroleum Company Limited (NNPC) has revealed that it has officially ceased its exclusive purchase arrangement with Dangote Refinery, opening the market for other petroleum marketers to buy petrol directly from the refinery.
The new development as reported by Premium Times ceases NNPCL’s exclusive purchasing role, and providinb room for marketers to negotiate prices with Dangote on a “willing buyer, willing seller” basis.
This also aligns with Nigeria’s current market practices of fully deregulated products like diesel, aviation fuel, and kerosene, which are already open to direct sales.Dangote Refinery, who started production in September has earlier noted that NNPCL would be its sole buyer.
However, recent statements by the NNPCL shows that the refinery is free to sell to all interested marketers.When NNPCL started lifting petrol from Dangote Refinery on 15th September, it had declared it would be the sole purchaser and had sparked concern of monopoly and increased prices.
However, the new decision by the NNPCL, to step down as the sole purchaser would enable direct access to the refinery’s petrol for all marketers. In September, NNPC reportedly purchased petrol from Dangote at ₦898.78 per litre but resold to marketers at ₦765.99 per litre, absorbing a subsidy of nearly ₦133 per litre.
During this period, NNPC lifted approximately 103 million litres of petrol from Dangote Refinery, although only 2,207 of 3,621 scheduled trucks were successfully loaded, accounting for just 26% of the targeted volume.With NNPC no longer responsible for the price differential, marketers will now purchase at cost directly from Dangote and set their own prices, which could result in higher fuel prices for consumers.
However, marketers can now source petrol from multiple suppliers, not just Dangote, fostering a more competitive market environment that could contribute to supply stability across Nigeria.
