Sept. 7, 2024
Nigerian National Petroleum Company Limited (NNPC Ltd) has faulted a press statement by the Muslim Rights Concern, MURIC, which claims that the Dangote Refinery Limited (DRL) is being undermined by its actions.
Giving a clarification on Saturday in a statement by its spokesperson, Olufemi Soneye, the NNPC said, the pricing of petroleum products from any refinery, including the Dangote Refinery Ltd. (DRL), is determined by global market forces and the recent changes in PMS prices have no impact on the DRL or any other domestic refinery’s access to the Nigerian market.
The NNPC Ltd. restated that it cannot undermine a business in which it holds a billion-dollar stake.
“Specifically, MURIC asserts that recent changes to the pump price of Premium Motor Spirit (PMS) will prevent the Dangote Refinery from offering lower prices and that NNPC Ltd. has become the sole offtaker of all products from the refinery.
To set the records straight, NNPC Ltd further stated that “in fact, if current prices are perceived as high, it presents an ideal opportunity for the refinery to sell its products at lower prices in the Nigerian market.
“Furthermore, we emphasise that there is no guarantee of lower prices associated with domestic refining compared to any global parity pricing framework, as confirmed by the DRL.
“The NNPC Ltd. will only fully offtake PMS from the DRL if the market prices of PMS are higher than the pump prices in Nigeria. The DRL and any other domestic refinery are free to sell directly to any marketer on a willing buyer, willing seller basis, which is the current practice for all fully deregulated products. NNPC Ltd. has no desire or intention to become the distributor for any entity in a free market environment, and therefore, the notion of becoming a sole offtaker does not arise.
As an advocacy group for fair and just treatment, MURIC should have verified the facts before making statements that are entirely flawed and has the potential to incite ordinary Nigerians against the NNPC Ltd.
