The Federal Government of Nigeria has made a significant announcement regarding the distribution of petrol in the country. As of Sunday, the Dangote Petroleum Refinery will begin distributing premium motor spirit, commonly known as petrol.
However, there's a twist - the petrol will be sold exclusively to the Nigerian National Petroleum Company Limited (NNPC). This means that NNPC will serve as the sole buyer of Dangote's petrol, which will then be sold to retailers.
This arrangement may lead to under-recovery of costs or subsidy, which could impact the pricing of petrol. As a result, the cost of petrol might not be as high as expected.
The exclusivity of this deal raises questions about the potential impact on the market and consumers. It will be interesting to see how this arrangement plays out and affects the prices of petrol in Nigeria.