With the termination of the NNPCL’s exclusive purchase arrangement with Dangote Refinery, other marketers will be able to acquire gasoline straight from the refinery.
This implies that merchants can now directly negotiate rates with Dangote Refinery and that NNPC would no longer be the only offtaker.
This move is in line with the procedures that are currently in place for completely deregulated products, which allow refineries to sell directly to marketers on the basis of interested buyers and sellers.
Earlier in September, Devakumar Edwin, vice president at Dangote Industries Limited, announced the 650,000 barrels per day Dangote Refinery has commenced the processing of petrol.
Mr. Edwin clarified that NNPC Limited will be the only buyer of its goods.
In response to a claim that the Dangote Refinery Limited was being weakened by the company’s actions at the time, the NNPC clarified that it was not the only party that purchased products from the Dangote Refinery. It said that any marketer might purchase gasoline from the refinery at no cost.
The NNPC clarified that, as is currently the case for all fully deregulated goods like diesel, aviation fuel, and kerosene, the Dangote Refinery and any other domestic refinery were free to sell directly to any marketer on a willing buyer, willing seller basis.
However, the NNPC started loading gasoline from the Dangote Refinery on September 15.
Although some big petroleum marketers were subsequently reportedly authorized to lift the product from the refinery under a deal with NNPC Ltd, independent merchants remained prohibited.
The House of Representatives demanded on September 26 that the federal government order NNPC Ltd. and Dangote Refinery to permit independent marketers to purchase gasoline straight from the refinery.
In order to facilitate public access to petroleum products, the lower house also asked the management of Dangote Refinery to construct, purchase, or collaborate with others to develop tank farms or depots throughout the nation’s geopolitical zones.
Oboku Oforji (PDP, Bayelsa) moved a motion of urgent public interest on Thursday, which was followed by this call.
Mr. Oforji, who made the motion, argued that the industry’s competition was at risk due to the exclusion of independent marketers.
He added that some marketers can turn to importing products in order to survive in the market and that competition is necessary for cost reduction.
“NPCL and the big marketers acting as the only off-takers equate to monopoly, which is essentially greed.” The congressman stated, “This is the same NNPC Ltd. that has failed to manage our crude and refineries for decades.” Time of Energy.
