The Federal Government announced on Friday that petrol supply from the Dangote Refinery will begin tomorrow, following an agreement on pricing and supply between both parties. The Nigerian National Petroleum Company Limited (NNPC) will serve as the sole off-taker of petrol from the refinery, while other marketers will obtain the product through NNPC.
Speaking in Abuja, Zacch Adedeji, Chairman of the Federal Inland Revenue Service and a member of the Presidential Committee on the Sale of Crude Oil and Refined Products, confirmed that NNPC will start supplying 385,000 barrels of crude oil per day to Dangote Refinery beginning October 1, 2024.
Adedeji further announced, “All agreements are finalized, and the loading of the first batch of PMS from Dangote Refinery will commence on Sunday, September 15.”
In return, Dangote Refinery will supply petrol (PMS) and diesel of equivalent value to the domestic market, with payments made in Naira. Diesel will be sold in Naira to any interested off-taker, while petrol will be exclusively sold to NNPC for distribution to various marketers.
He added, “From October 1, NNPC will supply about 385,000 barrels per day of crude oil to Dangote Refinery, and payment will be in Naira. The refinery will then supply PMS and diesel to the domestic market, also paid for in Naira. Diesel will be available for any off-taker, but PMS will only be sold to NNPC.”
This agreement is expected to alleviate the ongoing petrol shortage in the country and allow the government to maintain its subsidy payments on the product.
