Major oil marketers in Nigeria are set to begin purchasing petrol directly from the Dangote Petroleum Refinery as the Nigerian National Petroleum Company Limited (NNPCL) pulls out as the exclusive off-taker of the product. This development, expected to take effect between Thursday and next week, marks a significant shift in the country’s fuel distribution.
Sources from both NNPCL and the Major Energy Marketers Association of Nigeria (MEMAN) confirmed that the decision allows other players in the downstream sector to directly access products from the $20 billion Dangote Refinery. Previously, NNPCL was the sole buyer of petrol from the refinery, shouldering subsidies estimated at N3.3 billion daily.
This shift likely signals the complete removal of petrol subsidies by the Federal Government, which had been under pressure to reduce its financial burden. On Tuesday, oil marketers received formal notification to stop buying through NNPCL and approach the Dangote Refinery directly.
While the directive has been issued, major marketers have yet to begin loading petrol from the refinery. As of now, no official prices have been released by the Dangote Refinery, though price hikes are anticipated. Industry insiders expect the price of petrol to increase significantly, with estimates suggesting a possible rise to over N1,000 per litre in some locations.
The move away from subsidized petrol means that prices will now be determined by market forces, leading to potential cost increases nationwide. This change could take full effect as early as next week, with marketers still awaiting official pricing information from Dangote.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Ukadike Chinedu, has advised Nigerians to brace for a rise in fuel prices, though there is hope that the sale of crude in naira may bring some relief to consumers.
