“28m Litres Daily”: Markers Rush to Lift Dangote Petrol at Reduced Price, as NNPC Bans Fuel Imports

• Petrol marketers have inked a deal with the Dangote Refinery to lift 28 million litres of petrol daily for six months
• A stakeholders meeting in Abuja also temporarily suspended petroleum product imports by the marketers
• PETROAN disclosed that stakeholders at the meeting included the NNPC, NMDPRA, local refinery representatives and IPMAN

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Oil marketers have struck a deal with the Dangote Refinery to supply at least 28 million litres of petrol daily for six months for domestic consumption.

The development came amid an announcement by the refinery that it had slashed the ex-depot petrol price from N990 per litre to N970, saying it was a way of appreciating Nigerians.

Marketers to stop petrol imports

A stakeholders’ meeting at the weekend in Abuja resolved that petroleum products marketers will cease petrol imports. The meeting stressed that if they had to import new products, it would be due to the unavailability of products from the Dangote refinery.

Petrol retailers under the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) disclosed that the new deal was expected to help Nigerians overcome scarcity.

A statement by PETROAN spokesman Joseph Obele disclosed that other stakeholders who signed the agreement included the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigerian National Petroleum Company Limited (NNPC), and the Edo Refinery.

Others included Dangote Refinery, Waltersmith Refinery, Aradel Refinery, and the Independent Petroleum Marketers Association of Nigeria (IPMAN).

The market players will now purchase all their petroleum products from the Dangote Refinery.

The new deal to provide relief to Nigerians

The statement quoted PETROAN's national president, Billy Gilis-Harry, saying that the resolution will relieve pressure on the downstream sector and improve the economy.

ThisDay reports that the new deal will give the NMDPRA the data for the availability of diesel and aviation fuel for six months and must be subject to consideration for imports as may be needed.

The NMDPRA must also establish the basis for allowing import volumes to marketers based on the aggregate of domestic refineries’ capacity, with an understanding of covering shortfalls for respective marketers.

PETROAN disclosed in a statement that with the agreement, domestic refineries would provide quantities and delivery windows, which must be two months preceding the month of delivery to the customer and the NMDPRA.

Additionally, PETROAN said oil marketing firms were to enter direct commercial agreements with local refineries on a willing buyer-willing seller basis.

Filling stations slash petrol prices as landing cost falls

Legit.ng earlier reported that data from the Major Energy Marketers Association of Nigeria (MEMAN) shows that the landing cost of imported petrol has declined slightly to N975 per litre.

The adjustment shows a decrease from the previous rate of N977 per litre when calculated at an exchange rate of N1,658.93 to a dollar.

The spot landing cost also reduced slightly to N938 per litre, showing modest improvements caused by FX rate stability and supply dynamics.