The Nigerian National Petroleum Corporation (NNPC) has ended its exclusive purchase agreement with the Dangote Refinery, opening up the market for other fuel marketers to buy petrol directly from the refinery, PREMIUM TIMES reports. This shift means NNPC will no longer be the sole off-taker of the refinery’s petrol, allowing marketers to negotiate prices directly with Dangote Refinery on a “willing buyer, willing seller” basis.

This move aligns with practices for fully deregulated petroleum products, where refineries are free to sell directly to marketers. Earlier in September, Devakumar Edwin, Vice President at Dangote Industries Limited, announced that the 650,000 barrels per day Dangote Refinery had begun processing petrol, with NNPC initially expected to purchase its products exclusively.

However, the NNPC clarified in a subsequent statement that it was not the sole off-taker of all Dangote Refinery products and that the refinery was free to sell to any interested marketer. This development signals greater competition and flexibility in Nigeria’s petroleum market as the country continues its efforts toward deregulation.