Updated: Dangote refinery to begin petrol supply Sunday, signs agreement with NNPCL

Updated: Dangote refinery to begin petrol supply Sunday, signs agreement with NNPCL

Relief may have finally come to ease the nationwide fuel scarcity as the  Dangote Refinery will on Sunday September 15 start distributing petrol.

This follows an agreement the new refinery just signed with the Nigerian National Petroleum Company Limited (NNPCL).

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed this on Friday the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji.

This was said during a press conference in Abuja where Adedeji represented the minister.

“I am pleased to confirm that all necessary agreements have been finalized, and the loading of the first batch of the PMS (premium motor spirit – petrol) from the Dangote Refinery will begin on Sunday, September 15,” Edun stated.

From October 1, the NNPC Ltd. will provide the Dangote Refinery with approximately 385,000 barrels per day of crude oil, which will be paid for in Naira. In exchange, the refinery will supply petrol and diesel of equivalent value to the domestic market, also to be transacted in Naira.

“Diesel will be available for sale in Naira to any interested buyer, while PMS will be sold exclusively to the NNPC for distribution to other marketers for the time being,” he added.

READ ALSO:

• Lawyer sues Tinubu, Police Council over IGP tenure extension
• Lagos govt raises boarding fee to N100,000/term after parents have paid N35,000
• DR Congo coup: US, British citizens among 37 sentenced to death

All regulatory costs associated with the distribution, including those from the Nigerian Ports Authority (NPA) and Nigerian Maritime Administration and Safety Agency (NIMASA), will also be settled in Naira, according to the minister.

To ensure a smooth implementation of this initiative, a one-stop shop will be established at the Nigerian Ports Authority in Lagos, coordinating service provision from all regulatory and security agencies. Furthermore, the technical committee responsible for developing this initiative will transition to an implementation and monitoring committee based in Lagos for the next three to six months.

Edun reminded that the Federal Executive Council (FEC), under President Bola Tinubu’s leadership, had previously approved the sale of crude oil to local refineries in Naira.

This is aimed at reducing the pressure on the Naira, eliminating unnecessary transaction costs, and improving the availability of petroleum products within the country.

The minister acknowledged the efforts of the committees involved in this project, highlighting their work with the NNPC and Dangote Refinery to finalize the details for implementing the FEC’s approval.

“We sincerely thank President Tinubu for championing this innovative initiative and assure him of our commitment to fulfilling his vision,” he said.

Dangote refinery to begin fuel supply Sunday after deal with NNPCL