Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who also serves as the Chairman of the Implementation Committee, has provided an update on the direct purchase of Premium Motor Spirit (PMS) by petroleum product marketers.
“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 evaluating the progress of transitioning to a deregulated market structure for PMS and addressing the shift in the purchasing model for petroleum product marketers.
Key Updates:
New Direct Purchase Model: Under the new system, petroleum product marketers are now able to purchase PMS directly from local refineries, marking a significant change from the previous arrangement where the Nigerian National Petroleum Corporation Limited (NNPCL) was the sole purchaser and distributor.
Market Competitiveness: This direct purchasing mechanism allows marketers to negotiate commercial terms with the refineries, fostering a competitive market environment and ensuring smoother supply chain management.
Local Production of PMS: With local refineries now producing PMS, the market is better positioned to support direct transactions. This shift is expected to improve product availability and stabilize market conditions, benefiting Nigerian consumers.
The committee acknowledged ongoing discussions surrounding these market changes and emphasized their commitment to providing clarity while continuing to engage with stakeholders for a seamless transition.
