In a major shift in fuel distribution, the Federal Government has granted approval for marketers to start lifting fuel directly from the Dangote Refinery. This decision comes shortly after the Nigerian National Petroleum Company Limited (NNPCL) adjusted petrol pump prices at its outlets in Lagos and Abuja.

The announcement was made on Friday by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy. According to him, the approval follows a directive from the Federal Executive Council (FEC) and the introduction of a new naira-based sales system.

The new "Direct Purchase Model" allows petroleum product marketers to buy premium motor spirit (PMS) directly from local refineries. This replaces the old arrangement where the NNPCL was the sole purchaser and distributor of PMS.

The minister, who also chairs the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira, emphasized that this move is aimed at creating a more competitive market. It will also simplify the supply chain by allowing marketers to negotiate terms directly with refineries, ensuring smoother access to fuel.