The Federal government and the Dangote Refinery have finalized an agreement relating to the supply of petrol, with loading of the first batch scheduled to commence on Sunday, September 15th. This is expected to address the serious shortage of petrol supplies across the country.
The agreement outlines key terms, as disclosed by Zacch Adedeji, Chairperson of the Federal Inland Revenue Service (FIRS) and a member of the Presidential Committee on Sale of Crude Oil and Refined Products. It states that the Nigerian National Petroleum Corporation Limited (NNPCL) will be the sole off-taker for petrol from the Dangote Refinery, supplying other marketers.
NNPCL will source 385,000 barrels per day for Dangote Refinery, effective October 1, payable in Naira. In return, Dangote Refinery will supply petrol and diesel worth the same amount back into the domestic market, also settling in Naira terms.
As explained by Adedeji, all interested off-takers can buy diesel in Naira, while only NNPCL can purchase petrol, which it will then distribute among various marketers. Any other associated regulatory costs will also be charged in Naira.
This agreement was designed to stabilize access to gasoline, enabling the government to maintain its subsidy on the product.
In a related development, Dangote Refinery has lowered the prices of diesel and aviation fuel to N940 and N980 per liter, respectively.
