FG, Dangote Reach Agreement On Petrol Supply, Lifting Begins Today

The Federal Government on Friday disclosed that the supply of petrol from Dangote Refinery will commence on tomorrow after both parties reached an agreement on pricing and supply.

NNPC will remain as the sole off-taker of petrol from the refinery with other marketers getting the product from the national oil company.

Speaking in Abuja, a member of the Presidential Committee on the Sale of crude Oil and Refined Products and Chairman of the Federal Inland Revenue Service, Zacch Adedeji said in return NNPC Limited would commence the supply of 385,000 barrels of crude oil to Dangote Refinery on October 1, 2024.

Adedeji announced that “all agreements have been completed and loading of the first batch of PMS from the Dangote Refinery will commence on Sunday 15th September”.

He disclosed that Dangote Refinery will in return supply PMS and diesel of equivalent value to the domestic market to be paid for in Naira.

He said other decisions reached by the committee include the sale of Diesel in Naira by the Dangote Refinery to any interested off-taker while PMS will only be sold to NNPC.

“From 1 October, NNPC will commence the supply of about 385kbpd of crude oil to the Dangote Refinery to be paid for in Naira

“In return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market to be paid in Naira.

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“Diesel will be sold in Naira by the Dangote Refinery to any interested off-taker. PMS will only be sold to NNPC, NNPC will then sell to various marketers for now. All associated regulatory costs will also be paid for in Naira”, he added.

The agreement is expected to ease the acute shortage of petrol across the country and also allow the government to continue the payment of subsidies on the product.

The Presidential Committee on the Sale of Crude Oil and Refined Product has announced that loading of the first batch of petrol from the Dangote Refinery will commence on Sunday, September 15.

A member of the committee and Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, disclosed this in Abuja on Friday. Briefing journalists, the FIRS boss said that from October 1, the Nigerian National Petroleum Company Limited (NNPCL) will commence the supply of about 385kbpd of crude oil to the Dangote Refinery to be paid for in Naira.