Dangote to sell 28,000 l/d of PMS to marketers in 6 months

From Adanna Nnamani, Abuja

The Dangote Petroleum Refinery has guaranteed to sell an average of 28,000,000 litres of PMS daily for the next six months to oil marketers for domestic consumption in the Nigerian market.

This was disclosed in a statement issued by Dr Joseph Obele, National PRO, Petroleum Products Retail outlets owners Association of Nigeria (PETROAN) Abuja, at the weekend.

The statement quoted the National President of PETROAN, Dr Billy Gillis Harry expressing optimism that the resolutions will bring succour to the downstream sector and improve the Nigerian economy.

According Harry, the new deal is part of a resolution reached by stakeholders on the absorption of domestic petroleum product production by Nigerian Oil Marketing Companies including the Nigerian National Petroleum Company Ltd.

The association president added that the resolution will attract so much benefits which includes stability of Petroleum products, control of price fluctuations, Maintaining transparent communication, Addressing conflicts proactively and Fostering collaboration among key stakeholders players.

On his part, the National PRO of PETROAN Dr Joseph Obele said those that signed the resolution includes NMDPRA, NNPCL, Edo Refinery, Dangote Refinery, Waltersmith Refinery, Aradel Refinery, Independent Petroleum Marketers Association of Nigeria and Petroleum Regulatory and Petroleum Products Retail Outlets owners Association of Nigeria.

The document outlines that Aviation Turbine Kerosene and diesel will be supplied by all domestic refineries to the NMDPRA for a period of six months, with the possibility of considering imports as necessary.

Obele emphasised that the NMDPRA needs to establish criteria for allocating import volumes to oil marketing companies, based on the combined capacity of domestic refineries, ensuring coverage for any shortfalls experienced by individual marketers.

He further mentioned that, under this resolution, domestic refineries will provide fixed quantities and specific delivery windows, which will span two months prior to the delivery month for both customers and the NMDPRA.

According to Obele, each oil marketing company must enter into direct commercial agreements with domestic refineries on a willing buyer, willing seller basis.