The Federal Ministry of Finance has announced a shift in the purchasing model for Premium Motor Spirit (PMS), allowing petroleum product marketers to buy directly from local refineries.
This change, endorsed by the Federal Executive Council (FEC) and led by Finance Minister Wale Edun, is to create a competitive market and simplify the supply of PMS across Nigeria.
In its recent review meeting on October 10, 2024, the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira discussed the transition to a deregulated PMS market. Marketers can now negotiate directly with refineries, replacing the Nigerian National Petroleum Corporation (NNPCL) as the sole intermediary.
Key Updates:
- Direct Purchase Model:
The new policy allows marketers to negotiate commercial terms directly with refineries, which is expected to promote a competitive market environment. Previously, NNPCL controlled all PMS purchases and distribution, but the direct purchasing way should improve efficiency and flexibility in the supply chain. - Boost to Local Production:
With local production of PMS now underway, the Ministry expects this change to enhance market stability and improve product availability across Nigeria, benefiting consumers and stakeholders. - Commitment to Stakeholder Engagement:
The Ministry acknowledged that the shift might raise questions, and it is committed to ongoing engagement with stakeholders to address concerns and ensure a smooth transition.
More details Later…
