The Nigerian National Petroleum Company Limited (NNPCL) has indicated that Premium Motor Spirit (PMS) will only be fully taken off from Dangote Petroleum Refinery if pump prices in the country exceed the market prices. This might make some oil marketers import petrol from other countries for cheaper sources. NNPCL also stated that Dangote and other local refiners can sell to marketers directly on a willing buyer and seller basis, stressing its unwillingness to act as a distributor in a free market situation.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed its readiness to buy from Dangote if the price is right, although they may consider importing if they find it cheaper. According to industry observers, it appears that the Federal Government is not willing to stop fuel importation despite the recent surge in oil prices and the huge subsidy burden borne by NNPC.
The Dangote refinery, which was launched last week, is set to save Nigeria from importing petroleum products anymore. However, talks between Dangote and NNPC have stalled without progress, thereby prolonging fuel importation.
