New Petrol Price Coming As FG, NNPC, Dangote Refinery Agree on New Petrol Lifting, Subsidy Payment As Petrol Price Rises
● The Nigerian government, the NNPC and the Dangote Refinery have struck a new deal on petrol lifting from the facility
● The new arrangement reportedly allows NNPC to continue to subsidise petrol from the refinery but ceases to act as the sole off-taker
● The deal will now allow oil marketers to purchase petroleum products directly from the refinery. ….CONTINUE READING
The Nigerian government, the Nigerian National Petroleum Company Limited (NNPC), and the Dangote Refinery are in the advanced stages of planning to change the lifting and distribution of petrol from the facility.
The new arrangement allows the NNPC to continue paying subsidies on refinery petroleum products.
Findings show that petrol prices from the refinery hovers around N1,600 per dollar due mainly to the exchange rate volatility.
However, under the new arrangement, the NNPC would provide crude oil but stop acting as a middleman in distributing petrol and other petroleum products from the $20 billion refinery.
The new arrangement will allow oil marketers and depot owners to negotiate with refinery management to buy petrol directly from the mega refinery.
According to a Vanguard report, the details of the new deal have been developed for review by the implementation Committee on Crude Oil Sales in naira, which has been fixed for Wednesday, October 9, 2024, in Abuja.
The report said a source confirmed the arrangement, which has been widely criticised.
