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HomeBUSINESSLocal Refineries to sell PMS directly to Marketers, FG

Local Refineries to sell PMS directly to Marketers, FG

By Godfrey AKON

Marketers of Premium Motor Spirit, PMS, also known as petrol have been given the leeway to buy the product directly from local refineries.

The move, which is part of Nigeria’s journey towards deregulation, was announced by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, in a statement on Thursday.

According to Edun, the approval follows a directive of the Federal Executive Council, FEC, and the implementation of the new naira-based sales mechanism.

He said the federal government is focused on assessing the transition towards a deregulated market structure for PMS and addressing the change in the purchasing model for petroleum product marketers.

On the new direct purchase model, he said the most significant change under the new regime is that petroleum product marketers can now purchase PMS directly from local refineries.

Recall that in the previous arrangement, the Nigerian National Petroleum Company Limited, NNPC Ltd, was the sole purchaser and distributor of PMS from the refineries.

With introduction of the direct purchasing policy marketers will be allowed to negotiate commercial terms directly with the refineries, fostering a more competitive market environment and enabling a smoother supply chain for petroleum products.

Edun further stated that local production of PMS: With the commencement of local PMS production, the market is better equipped to support these direct transactions.

He added that this transition is expected to enhance efficiency in product availability and stabilize market conditions for the benefit of all Nigerians he added.

“The committee 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,” he said.

While stating that the direct purchase of PMS by petroleum product marketers marks a new era of growth and development for Nigeria’s petroleum industry, he reassured stakeholders that the committee will continue to provide clarity and engage with stakeholders to ensure the success of this new regime.

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