The implementation committee of the Federal Government on the sales of crude oil and refined products in Naira has explained that government unbundled the monopoly of the Nigeria National Petroleum Corporation Limited (NNPCL) to allow independent petroleum product marketers to purchase Premium Motor Spirit popularly called petrol, directly from local refineries.
Chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, the committee gave the update after its second review meeting that was held on Wednesday.
The minister said in a statement on Friday, that the meeting focused on assessing the transition towards a deregulated market structure for Premium Motor Spirit (PMS) and addressing the change in the purchasing model for petroleum product marketers.
“The most significant change under the new regime is that petroleum product marketers can now purchase PMS directly from local refineries.
“This marks a departure from the previous arrangement where the Nigerian National Petroleum Corporation (NNPCL) served as the sole purchaser and distributor of PMS from the refineries,” Edun said in the statement that was posted the X account of the Federal Ministry of Finance.
The minister said the objective is to allow for a free market environment marked with competiveness.
“This direct purchasing mechanism allows marketers to negotiate commercial terms directly with the refineries, fostering a more competitive market environment and enabling a smoother supply chain for petroleum products,” the statement said.
It further stressed that with the commencement of local PMS production, the market is better equipped to support these direct transactions.
“This transition is expected to enhance efficiency in product availability and stabilise market conditions for the benefit of all Nigerians,” it stated.
The Committee, the statement added, also recognised that there are questions and discussions regarding this change in the market structure, adding, “We are committed to providing clarity on this development and will continue to engage with stakeholders to ensure a seamless transition process,” the minister stated.
