The Nigerian National Petroleum Company Limited (NNPC) is ending its exclusive purchasing deal with Dangote Refinery, paving the way for other fuel marketers to source petrol directly from the facility.

Sources with knowledge of the matter told Premium Times that NNPC will no longer act as the sole off-taker, a move designed to promote competition and improve supply chain stability.

Marketers can now negotiate prices directly with Dangote Refinery based on market conditions, rather than relying on NNPC as the intermediary.

Read also: NNPC: From monopoly to monopsony

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An NNPC official confirmed the development to Premium Times on Monday, saying, “Yes, it is true. We can no longer continue to bear that burden.”

Recall that when the Dangote Refinery started processing petrol in September, the NNPC was the only entity allowed to buy and resell to marketers, who then distribute to others.

The NNPC announced that it would buy petrol from Dangote Refiner at N898.78 per litre and sell to marketers at N765.99 per litre, shouldering a subsidy of almost N133 per litre.

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By Faith Esifiho • October 7, 2024

Faith Esifiho is an Energy correspondent at BusinessDay, covering Nigeria's electricity sector, oil and gas industry, and energy policy. She reports on power outages, electricity tariffs, gas sector reforms, and the broader challenges facing the country's energy transition. She specializes in data-led reporting and human-angle stories that examine how energy policies affect everyday Nigerians and also tracks trends in the power sector, analyses regulatory changes, and investigates the impact of subsidy reforms and pricing policies.

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