By Dele Ogbodo
The Federal Government on Thursday announced a significant milestone in Nigeria’s journey towards a deregulated market structure for Premium Motor Spirit (PMS) even as government assured that henceforth petroleum marketers can buy the product directly from local refineries.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed this in a statement made available to the media, through the Ministry’s Media and Public Affairs Department.
“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 Minister, at its second review meeting.”
The meeting the Minister asserted that federal government is 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.
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.
The new development 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.
According to him 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 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.” The Minister informed
The direct purchase of PMS by petroleum product marketers marks a new era of growth and development for Nigeria’s petroleum industry, he added.
Edun, reassures stakeholders that the committee will continue to provide clarity and engage with stakeholders to ensure the success of this new regime.
