FRI OCT 11 2024-theGBJournal| Petroleum product marketers can now purchase PMS directly from local refineries, says the Federal Government.
The new 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 decision 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.
This decision was reached after the second review meeting of the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on Wednesday.
The meeting also assessed the impact of local production of PMS.
”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 stabilize market conditions for the benefit of all Nigerians,” the Committee noted.
The Committee said it also recognizes that there are questions and discussions regarding this change in the market structure.
”We are committed to providing clarity on this development and will continue to engage with stakeholders to ensure a seamless transition process.”
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