NNPC Confirmed as Sole Buyer of Dangote Refinery Petrol
Despite recent claims by the Nigerian National Petroleum Company Limited (NNPC) that it is not the sole offtaker of refined petrol from the Dangote Refinery, Finance Minister Wale Edun has stated otherwise, affirming that the NNPC will be the only purchaser of the refinery’s petrol output.
On Sunday, NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, clarified that domestic refining may not necessarily guarantee lower prices compared to global parity pricing.
He added that the NNPC would only fully offtake Premium Motor Spirit (PMS) from the Dangote Refinery if the market prices exceed Nigeria’s pump prices.
Soneye further noted that the Dangote Refinery and other local refineries are free to sell their products directly to marketers under a willing buyer, willing seller arrangement, as is standard for deregulated products.
He emphasised that NNPC has no intention of becoming the sole distributor of any refinery’s output in a deregulated market.
The minister also confirmed that all agreements have been finalised to implement the Federal Executive Council’s (FEC) decision to sell crude oil to local refineries and purchase petroleum products in Naira.
This move, approved by President Tinubu’s administration, is intended to reduce pressure on the Naira, lower transaction costs, and improve the availability of petroleum products in Nigeria.
