By correspondent.
Nigerians may see lower petrol prices this week as the Federal Government is set to begin implementation of a new sales arrangement, that will allow marketers to negotiate prices and buy directly from local refineries.
Our correspondent gathered that the new model, known as the Direct Purchase Mechanism, is aimed at creating a more competitive market environment and streamline the supply chain to help reduce petrol prices.
The initiative was said to have been announced by Mr.Wale Edun, Minister of Finance and Coordinating Minister for the Economy on Friday in Abuja , according to a statement from his office.
Edun, who also the Chairman, Implementation Committee on Domestic Sales of Crude Oil in Local Currency, said the Direct Purchase Mechanism is a result of the committee’s second review meeting held on Wednesday, October 10, 2024.
The statement reads: “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 assessing the transition towards a deregulated market structure for Premium Motor Spirit (PMS) and addressing the change in the purchasing model for petroleum product marketers.
“The most significant change under the new regime is that petroleum product marketers can now purchase PMS directly from local refineries. This marks a departure from the previous arrangement where the Nigerian National Petroleum Corporation (NNPCL) served as the sole purchaser and distributor of PMS from the refineries.
“This direct purchasing mechanism allows marketers to negotiate commercial terms directly with the refineries, fostering a more competitive market environment and enabling a smoother supply chain for petroleum products.” (GBN).
