Major oil marketers will soon start buying petrol directly from the Dangote Petroleum Refinery. This shift comes as NNPCL relinquishes its role as the sole off-taker of petrol from the $20 billion refinery.
Multiple sources from both NNPCL and the Major Energies Marketers Association of Nigeria (MEMAN) confirmed this change on Tuesday. It signifies a potential end to petrol subsidies in the country.
Previously, the Federal Government had stated that only NNPCL would purchase petrol from the Dangote refinery.
However, recent developments suggest a change in strategy. While crude oil will be sold to Dangote in naira from October 1st, the Dangote refinery will now supply petrol and diesel directly to the domestic market, with petrol sales being made directly to oil marketers.
Oil marketers believe this move signals the complete removal of petrol subsidies. Previously, NNPCL shouldered a significant subsidy burden on petrol purchased from Dangote, estimated at around N3.3 billion daily. By ending its role as the sole off-taker, NNPCL aims to save these subsidy costs.
With subsidies potentially gone, the price of petrol is expected to rise. Unconfirmed reports suggest the NMDPRA may have released new, higher petrol prices. However, the NMDPRA has not confirmed these reports as of yet.
Oil marketers have acknowledged the change but haven’t yet begun buying petrol directly from Dangote. While some dealers anticipate starting next week, others are waiting for official price announcements from the Dangote refinery.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Ukadike Chinedu, expects petrol prices to increase with the removal of subsidies. Nigerians are advised to brace for this reality.
