The Dangote Petroleum Refinery has initiated the direct distribution of Premium Motor Spirit (PMS), commonly known as petrol, to select oil marketers, bypassing the Nigerian National Petroleum Company Limited (NNPC). This strategic move comes as various marketers ramp up their efforts to acquire petrol directly from the refinery, while others resort to importing the commodity. An influx of imported PMS is anticipated, with hundreds of millions of litres expected to arrive in Nigeria over the next two weeks.
Reports indicate that between Friday, October 18, and Sunday, October 20, at least four vessels carrying imported PMS docked at seaports across Nigeria. A document from the Nigerian Port Authority revealed that approximately 123.4 million litres of PMS were delivered at two ports to enhance national fuel supplies.
The growing interest from oil traders in importing petrol aims to supplement the supply chain, particularly from the $20 billion Dangote refinery. While larger oil marketers are actively importing PMS, others have begun directly sourcing the product from the Lekki facility.
A senior official at the Dangote refinery disclosed that marketers can now engage in direct transactions on a willing-buyer, willing-seller basis. “Marketers are already coming to the refinery to lift PMS directly, without involving a third party,” stated the source, who preferred to remain anonymous due to restrictions on discussing the matter publicly.
Although the exact pricing for the petrol was not disclosed, the official noted that the interest from oil dealers is contingent on favorable pricing. “We have reached agreements with some marketers, and discussions are ongoing. If the price is not competitive, marketers would not be inclined to approach us,” the official explained.
The official further highlighted improvements in operations, particularly following the Federal Government’s commencement of crude oil supply to the refinery. A separate source at the refinery confirmed that several trucks from various marketers were seen loading petrol directly from the facility, bypassing NNPC entirely.
“Today, we observed trucks from marketers purchasing directly from Dangote, marking the start of direct sales,” the source noted.
Due to heightened demand for fuel both domestically and in neighboring countries, the Dangote refinery is prioritizing 53 percent of its PMS production from its crude oil supply. “This ratio may be adjusted in the future if the demand for other refined products surpasses that for petrol. For now, about 53 percent of our crude is dedicated to petrol production, with the remaining percentage allocated to other products,” the official stated.
In response to inquiries about direct purchases of petrol from Dangote without involving NNPC, a prominent oil marketer confirmed the development. “Yes, this process is underway. It was anticipated that this would occur soon, as it aligns with normal business practices,” the source affirmed.
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