In a significant development, the Nigerian National Petroleum Company (NNPC) has announced that it will no longer act as the sole off-taker and middleman in the purchase of petrol from the Dangote Refinery. This means that marketers can now negotiate prices directly with Dangote Refinery, effectively ending NNPC’s monopoly in the sector.
The decision is expected to increase competition and transparency in the pricing of petrol, as marketers will now have the freedom to negotiate prices directly with the refinery. This is seen as a positive development for the downstream sector, as it will help to reduce the cost of petrol and make it more affordable for Nigerians.
The NNPC had previously been the sole off-taker of petrol from the Dangote Refinery, and would then sell it to marketers at a fixed price. However, with this new development, marketers will now be able to negotiate prices directly with the refinery, which is expected to lead to a more competitive and efficient market.
The Dangote Refinery is one of the largest in Africa, with a capacity to produce 650,000 barrels of petrol per day. The refinery is expected to significantly reduce Nigeria’s dependence on imported petrol, and will help to meet the country’s growing demand for the product.
Industry analysts have welcomed the development, saying it will help to increase competition and reduce prices. “This is a positive development for the downstream sector,” said one analyst. “It will help to reduce the cost of petrol and make it more affordable for Nigerians.
