The Dangote refinery has commence the sale of Premium motor Spirit, PMS, also known as petrol directly to marketers as against the earlier arrangement of Nigerian National Petroleum limited, NNPC as a middle man. Although it was learned that some marketers despite the offer by the Dangote plant have continued to import the product from outside the country as millions of litres of the PMS is expected to hit the Nigerian shores in two weeks time.
This is as no fewer than four vessels had between 18th to 20th October arrived the Nigerian shores with an estimated 123.4 million litres of pms berthed the Nigerian seaport to argument the Dangote domestic supply according to document sighted by punch from the Nigerian Port Authority, NPA.
While others are importing, their counterpart who wished to patronise Dangote have commenced lifting the PMS directly from the Lekki-based plant.
It was confirmed that marketers are now allowed to approach the company for direct business transactions on a willing-buyer, willing-seller basis.
Source disclosed that “Marketers are already coming to the refinery to lift PMS. They are lifting directly from the refinery, not through a third party,” the reliable official, who spoke in confidence due to lack of authorisation to speak on the matter, stated.
The source, who could not tell the price at which marketers were lifting the product, noted that the oil dealers would not come if the price was not favourable to them.
“We have reached agreements with some of the marketers and more are still ongoing. I don’t know the exact price, but if the price is not good, the marketers would not be coming to us,” the official stated.
He confirmed that since the federal government approved the supply of the crude to the refinery, things are beginning to turn around for good.
Another source corroborated saying that “Some of the trucks you saw there today were from marketers purchasing the product directly from Dangote, without recourse to NNPC. So the direct sale has started,” the source stated.
The official explained that due to the high demand for petrol in Nigeria and other countries, the refinery had focused on ensuring 53 per cent of PMS production from its crude oil supplies.
“This could be reviewed in future if the demand for other finished products increases more than the demand for petrol, but right now about 53 per cent of our crude is used for petrol production, while other products account for the remaining percentage,” the official stated.
However, when enquired whether marketers have commenced direct purchase of the product from the Dangote refinery without recourse to NNPC, the marketer responded in affirmation.
He said, “Yes everyone is in the process, this was advised that it would happen soon and is a normal business transaction”.
However, this is against some insinuation that the refinery would not be able to sell the product directly to marketers unless it calls off it deal with the NNPC.
This is as the Dangote earlier statement that the NNPC would be the sole off-taker of its petrol from September 15.
Source at the refinery revealed that this was decided by the federal government, though was taken aback when the Technical subcommittee on Domestic sales of Crude oil in local currency announced on October 11 that marketers should now lift petroleum directly from the refinery.
In a statement, the Minister of Finance Wale Edun stated that marketers are now able to buy PMS directly from Dangote without NNPC as intermediary, saying marketers are encouraged to initiate a direct purchase from refineries on mutually negotiated commercial terms so as to promote competition.
This pronouncement by the Minister has fully deregulated the Dangote refinery and they can approach directly for negotiation and lifting.
