The Federal Government has made a groundbreaking announcement, granting oil marketers direct access to source petrol from the Dangote Refinery, effectively bypassing the Nigerian National Petroleum Company Limited (NNPC) . This development was confirmed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on Friday, October 11, 2024 .
*Key Benefits of the New Policy*
– _Supports Local Production and Distribution_: The new operational framework promotes local production and distribution of crude oil and refined petroleum products, ensuring domestic sales in naira .
– _Full Deregulation of Petroleum Products_: With local production active, the government aims to fully deregulate the market for all petroleum products .
– _Direct Purchases from Local Refineries_: Petroleum marketers can now engage in direct purchases from local refineries without NNPC’s involvement .
– _Improved Market Efficiency_: Marketers will negotiate commercial terms directly with refineries, fostering competition and improving market efficiency .
– _Reduced Costs and Enhanced Supply Chain_: The long-term goal is to reduce costs and enhance the supply chain, benefiting Nigerian consumers .
This policy shift is expected to lead to a more competitive and efficient market for petroleum products, ultimately promoting a healthier marketplace for Nigerian consumers .
