The price of Premium Motor Spirit, PMS, remains high across the country despite reports that the Dangote Petroleum Refinery has commenced direct supply to some oil marketers, bypassing the Nigerian National Petroleum Company (NNPC).
The local refinery also confirmed receiving the first tranche of crude supplied under the Naira-for-crude deal with the Federal Government, which is expected to crash petrol prices by removing the effect of forex on supply.
Checks by Naija Daily News in major cities revealed that although the direct purchase from DRL has eased supply worries, petrol still sells above N1,000 per litre, except in Lagos where motorists get it for around N995
In Port Harcourt, Warri and Calabar petrol prices average N1,250, 1,220 and 1,225 respectively.
Numerous oil marketers are seeking to purchase petrol from the refinery, while others continue to import it.
It is anticipated that hundreds of millions of litres of imported petrol will soon arrive in Nigeria, with four vessels carrying imported petrol docking at Nigerian ports between October 18 and 20, delivering 123.4 million litres.
While some marketers are importing petrol, others are procuring it directly from the refinery in Lekki. A senior refinery official confirmed that marketers can now negotiate direct purchases, provided the price is favourable.
The official also noted that the refinery is enhancing its operations, particularly with the government’s provision of crude oil. Trucks from marketers have been observed loading petrol directly from the refinery, signifying the commencement of direct sales.
Currently, the refinery is focusing on producing 53% of its petrol from crude oil, though this may change if demand for other products increases. A major marketer confirmed that there is a general shift towards direct purchases from the refinery.
This development contradicts earlier assertions that the refinery could only sell petrol through the NNPC. Initially, the Federal Government had designated the NNPC as the sole buyer of petrol.
Recently, a committee announced that marketers could purchase petrol directly from local refineries, a move aimed at fostering competition and enhancing market efficiency.
Officials from the Independent Petroleum Marketers Association of Nigeria (IPMAN) recently met with Dangote Industries to explore business opportunities, expressing optimism about commencing petrol purchases soon.
However, they indicated that they cannot proceed unless the refinery terminates its contract with the NNPC.
When the refinery began selling petrol on September 15, the NNPC claimed it purchased petrol at N898 per litre, a statement that the refinery disputed. The pricing committee is expected to announce official prices soon.
