NNPC withdraws as middleman in Dangote Refinery petrol purchase
The Nigerian National Petroleum Company Limited (NNPC) is ending its exclusive monopoly purchase agreement with Dangote Refinery, opening up the market for other marketers to buy petrol directly from the refinery.
This means NNPC will no longer be the sole off-taker, other marketers can now negotiate prices directly with Dangote Refinery.
This development is in tune with the current practices for fully deregulated products, where refineries can sell directly to marketers on a willing buyer, willing seller basis.
The NNPC also confirmed that the Dangote Refinery and any other domestic refinery were free to sell directly to any marketer on a willing buyer, willing seller basis, which is the current practice for all fully deregulated products such as diesel, aviation fuel and kerosene.
Prio to this development, On 26 September, the House of Representatives called on the federal government to mandate the NNPC Ltd and Dangote Refinery to allow independent marketers to lift petrol directly from the refinery.
The lower chamber also urged the management of Dangote Refinery to partner with depots across the geo-political zones of the country, to ease access to petroleum products for the public.
This call followed a motion of urgent public importance moved on Thursday by Oboku Oforji (PDP, Bayelsa).
Moving the motion, Mr Oforji explained that the exclusion of independent marketers threatened competition in the sector.
He noted that competition is essential for reducing costs, adding that some marketers may resort to importing products to survive in the market.
He further explained that if โNNPCL remains the major marketers and the exclusive off-takers spells monopoly, which is tantamount to greed.
He added that it is this same NNPC Ltd that has failed to manage our crude and refineries for decades,โ the lawmaker said at the time.
