The Federal Government announced on Friday that petrol supply from Dangote Refinery will commence tomorrow, following a pricing and supply agreement between the two parties.
As part of the agreement, NNPC will remain the sole off-taker of petrol from the refinery, with other marketers obtaining the product from the national oil company.
According to Zacch Adedeji, Chairman of the Federal Inland Revenue Service and member of the Presidential Committee on the Sale of Crude Oil and Refined Products, all agreements have been completed.
He confirmed that loading of the first batch of PMS from the Dangote Refinery will begin on Sunday, September 15.
Adedeji explained that in return for the supply agreement, NNPC Limited will commence supplying 385,000 barrels of crude oil to Dangote Refinery on October 1, 2024, to be paid for in Naira.
Dangote Refinery will then supply PMS and diesel of equivalent value to the domestic market, also paid for in Naira.
Additionally, Dangote Refinery will sell diesel in Naira to interested off-takers, while PMS will only be sold to NNPC, which will then distribute to various marketers.
All associated regulatory costs will be paid for in Naira.
This agreement is expected to alleviate the acute petrol shortage nationwide and enable continued subsidy payments by the government.
Adedeji announced that “all agreements have been completed and loading of the first batch of PMS from the Dangote Refinery will commence on Sunday 15th September.
“From 1 October, NNPC will commence the supply of about 385kbpd of crude oil to the Dangote Refinery to be paid for in Naira
“In return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market to be paid in Naira.
“Diesel will be sold in Naira by the Dangote Refinery to any interested off-taker. PMS will only be sold to NNPC, NNPC will then sell to various marketers for now. All associated regulatory costs will also be paid for in Naira.”
