Petroleum marketers have started to extract gasoline from the Dangote Refinery at a price of N765.99 per liter, according to a report by The Sahara Reporters.This move comes amid the ongoing subsidy regime, which has sparked intense debate in the industry. The marketers, including 11plc, Total Energies, and AA Rano, among others, have begun lifting the product from the Nigerian National Company (NNPC) Trading Limited.CONTINUE FULL READING>>>>>
The executive vice-president, downstream at NNPC, Adedapo Segun, has shed light on the situation, stating that the product is being subsidised, making it impossible for marketers to purchase directly from the refinery.
He emphasized that the market value of PMS is higher than the subsidized rate at which NNPC is selling.
The report reveals that some marketers have already started lifting the product at N765.99 from Dangote Refinery through NNPC, the sole off-taker of the product.
Tunji Oyebanji, 11Plc Managing Director, confirmed this development to the newspaper on Thursday evening.
This move raises questions about the sustainability of the subsidy regime and its impact on the industry. As the situation unfolds, stakeholders are watching closely to see how the market will respond to these changes.
Will the subsidy regime continue to shape the industry’s dynamics, or will market forces prevail? Only time will tell.CONTINUE FULL READING>>>>>
