Plans have reached an advanced by the federal government, Nigerian National Petroleum Company Limited, NNPCL and Dangote Refinery; to make far-reaching changes in Nigeria’s process of lifting and distribution of petrol.
Under the current arrangement, the NNPCL allocates crude oil for refining and also undertake distribution of petrol to different parts of the nation directly and through the oil marketers and depot owners.
This arrangement enables the NNPCL to subsidise the product, which price remains high, due mainly to the low value of the Naira, currently hovering at N1, 600/$ at the unofficial market.
But under the new arrangement being considered, the NNPCL would continue to provide crude oil but seized to play such dominant role in the distribution of the product of the $20 billion refinery.
This would open up the space for oil marketers and depot owners to conclude arrangements with the management of the 650,000 bpd refinery and lift petrol directly from the facility.
