The Nigeria federal government has granted permission to petroleum product marketers to purchase Premium Motor Spirit (PMS), popularly known as Petrol directly from local refineries.
This new order nullifies the previous arrangement where the Nigerian National Petroleum Corporation (NNPCL) served as the sole purchaser and distributor of PMS from the refineries.
With the new order, marketers can now negotiate commercial terms directly with the refineries, fostering a more competitive market environment and enabling a smoother supply chain for petroleum products.
The Minister of Finance and Chairman of the Naira-Crude Sale Implementation Committee, Wale Edun, detailed in a statement on Friday, 11th of October, 2024.
The statement reads in part:
“Following the directive of the Federal Executive Council (FEC) and the implementation of the new Naira-based sales mechanism, the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira, chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, held its second review meeting on Wednesday, October 10, 2024.
“New Direct Purchase Model: The most significant change under the new regime is that petroleum product marketers can now purchase PMS directly from local refineries. This marks a departure from the previous arrangement where the Nigerian National Petroleum Corporation (NNPCL) served as the sole purchaser and distributor of PMS from the refineries.
“This direct purchasing mechanism allows marketers to negotiate commercial terms directly with the refineries, fostering a more competitive market environment and enabling a smoother supply chain for petroleum products.
“Local Production of PMS: With the commencement of local PMS production, the market is better equipped to support these direct transactions. This transition is expected to enhance efficiency in product availability and stabilize market conditions for the benefit of all Nigerians.” [CONTINUE READING HERE]>>>>>
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