by From Thursday until next week, major oil marketers in Nigeria will begin purchasing petrol directly from the Dangote Refinery. This change comes as the Nigerian National Petroleum Company Limited (NNPCL) steps down as the sole buyer of fuel from the $20 billion refinery.
NNPCL’s decision allows other players in the oil industry to buy petrol straight from Dangote, opening up the market. However, there are reports of a potential increase in petrol prices, but this has not been officially confirmed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The decision to stop NNPCL’s sole purchase of Dangote petrol is seen as a sign that the Federal Government has fully removed the fuel subsidy. Previously, NNPCL spent billions monthly to keep petrol prices low, but with this move, the government may save significant sums.
Although oil marketers have not yet started buying from the Dangote refinery, they have received official notice to do so. The change also means petrol prices will be determined by market forces, and a potential price increase may occur soon.
Reports suggest that in some cities like Abuja, the pump price of petrol could rise to over N1,000 per litre. However, the exact prices are still being determined, and marketers are expected to begin buying from the refinery directly next week.
