Major oil marketers will begin direct purchases of Premium Motor Spirit (PMS), commonly known as petrol, from the Dangote Petroleum Refinery between Thursday and next week.

This follows the Nigerian National Petroleum Company Limited (NNPCL) stepping down as the sole off-taker of petrol from the $20bn Dangote refinery.

Sources from both NNPCL and the Major Energy Marketers Association of Nigeria (MEMAN) confirmed the development on Tuesday.

NNPCL’s decision signals the removal of fuel subsidies, allowing other downstream sector players to purchase directly from the refinery.

Meanwhile, unconfirmed reports suggest that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has set new, higher petrol prices, though NMDPRA’s spokesperson, George Ene-Ita, did not confirm this information.

An official from a major oil marketing company confirmed that while the directive to buy directly from Dangote refinery has been issued, major marketers have not yet begun purchasing. They await Dangote’s pricing for the petrol.

The shift in NNPCL’s role is expected to save the national oil company significant subsidy expenses and reflects the government’s broader strategy to eliminate petrol subsidies.