Dangote Refinery, NNPCL, Edo Refinery, Others In 28m Litre Daily Domestic PMS Supply Deal

The Dangote Refinery has entered into an agreement with the Nigerian National Petroleum Company Limited, NNPCL, Edo Refinery and other oil marketers to make available a daily supply 28 million litres of Premium Motor Spirit, PMS, also known as petrol, for domestic use over a six month period.

The new deal also involves the availability of aviation fuel and diesel from all domestic refineries within the same period but subject to import consideration as may be required. 

The deal, sealed over the weekend, is coming in the wake of an announcement by the refinery that it had reduced ex-depot price for PMS from N990 to N970 per litre in what it describes as its own way of appreciating Nigerians for their support. 

According to a star Joseph Obele, NMDPRA, NNPCL, tement issued retailers under the aegis of the Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, the resolution was made at a stakeholder's meeting in the nation's capital, Abuja, over the weekend. 

According to the statement, the agreement will, going forward, put a halt to the importation of the product, adding that bringing in new stock will solely be dependent on non-availability from the refinery. 

Spokesperson of PETROAN, Dr Joseph Obele, explained that the agreement is expected to end ongoing challenges in the sector as other stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, is involved. Others include Waltersmith Refinery, Aradel Refinery, and Independent Petroleum Marketers Association of Nigeria, IPMAN. 

“The resolution includes Dangote refinery guaranteeing to sell an average of 28,000,000 litres of Premium Motor Spirit (PMS) daily for the next six months to oil marketers for domestic consumption in the Nigerian market,” PETROAN stated. 

Nigeria’s Average Daily Petrol Supply, according to the NNPCL, stands at 68 Million Litres