Abuja, Oct. 13, 2024 – Nigerians may begin to enjoy lower prices of petrol this week as a new petrol sale arrangement that allows marketers to negotiate prices and buy directly from local refineries will take effect.
The new arrangement, called Direct Purchase Mechanism, is to engender a more competitive market environment and smoother supply chain to bring down petrol prices.
The new arrangement, called Direct Purchase Mechanism, was announced by Wale Edun, the Minister of Finance and Coordinating Minister for the Economy on Friday.
According to a statement by the minister, who is also the Chairman of the Implementation Committee on Domestic Sales of Crude Oil in Local Currency, the new arrangement is a fallout of the second review meeting of the committee held on Wednesday, Oct. 10, 2024.
The statement reads: “Following the directive of the Federal Executive Council (FEC) and the implementation of the new Naira-based sales mechanism, the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira, chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun. held its second review meeting on Wednesday October 10, 2024.
“The meeting focused on assessing the transition towards a deregulated market structure for Premium Motor Spirit (PMS) and addressing the change in the purchasing model for petroleum product marketers.
“The most significant change under the new regime is that petroleum
product marketers can now purchase PMS directly from local refineries.
“This 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 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.” (GBN)
