In a significant shift towards a deregulated petroleum market, the Federal Government of Nigeria has announced that petroleum product marketers can now directly purchase Premium Motor Spirit (PMS) from local refineries. This development, revealed by the Minister of Finance, Mr. Wale Edun, marks a major change in how fuel is distributed across the country
The announcement follows a directive from the Federal Executive Council (FEC) and is part of the new Naira-based sales mechanism aimed at improving the efficiency of the petroleum supply chain.
Previously, the Nigerian National Petroleum Corporation Limited (NNPCL) was the sole distributor, which limited competition and flexibility in the market.
During a recent review meeting of the Implementation Committee on the Sales of Crude Oil and Refined Products, Minister Edun stated that the direct purchasing model would empower marketers to negotiate terms directly with refineries, fostering a more competitive environment.
The director of information and public relations, Muhammed Manga in a statement said the change is expected to enhance product availability and stabilize market conditions, benefiting consumers across Nigeria.
“With the commencement of local production of PMS, we are better positioned to support these direct transactions,” Edun said.
He also reassured stakeholders that the government is committed to providing clarity and facilitating a seamless transition to this new model.
The initiative is anticipated to lead to growth and development, positioning the country for a more robust energy sector As Nigeria aims to streamline its petroleum industry the statement indicated
Explaining further the statement said the government plans to continue engaging with stakeholders to address any concerns as the new purchasing system takes effect.
The Federal Ministry of Finance through the statement encouraged all participants in the petroleum sector to prepare for the significant transition, which is poised to reshape the industry landscape in Nigeria.