Dangote Petroleum Refinery is scheduled to start distributing premium motor spirit (PMS), or petrol, on Sunday, according to the federal government.
The coordinating minister of the economy and minister of finance, Wale Edun, speaks at a press conference in Abuja on Friday.
The Federal Inland Revenue Service (FIRS) executive chairman Zacch Adedeji represented the minister, who stated that all agreements have been finalised for the loading of the first batch of petrol.
“I’m happy to report that all agreements have been fulfilled, and on Sunday, September 15, loading of the first batch of PMS from the Dangote Refinery will start,” Edun stated.
‘DANGOTE REFINERY TO SELL PMS TO ONLY NNPC’
Additionally, Edun stated that the Dangote refinery will only sell petrol to the NNPC, informing prospective retailers that they would need to purchase the fuel from the national oil company.
The minister did clarify, though, that any off-taker can purchase diesel from the Dangote refinery.
“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,” he said.
Edun’s statement contradicts NNPC’s claim on September 7 that it does not intend to be the sole distributor of petrol produced by the Dangote refinery.
In addition, the minister said all associated regulatory costs pertaining to the Nigeria Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA) and others would also be paid for in naira.
“We are also setting up a one-stop shop that will coordinate service provision from all regulatory, and security agencies, and other stakeholders to ensure a smooth implementation of this initiative. This will be located in Nigeria Ports Authority (NPA), Lagos,” Edun said.
“The technical committee that worked to flesh out this initiative will transition to an implementation execution and monitoring committee that will be working out of Lagos for the next three to six months.”
‘CRUDE OIL SALE IN NAIRA WILL REDUCE COST, PRESSURE ON LOCAL CURRENCY’
Speaking about the license to buy fuel from the refiners in local currency and sell crude oil to them in naira, Edun said the move will lessen pressure on the local currency.
A proposal by President Bola Tinubu instructing the NNPC to sell crude oil to the Dangote refinery and other refineries in naira was approved by the federal executive council (FEC) on July 29.
According to the minister, the step will also increase the nation’s access to petroleum products and remove pointless transaction costs.
Edun stated that the technical committee and the implementation committee, which he led, had worked closely with the NNPC and Dangote refinery to determine the specifics of how to carry out the approval by the FEC
Thanking Tinubu for spearheading the project, Edun gave the president confidence that the committee will carry out his idea.
