The Nigerian National Petroleum Company Limited (NNPCL) said on Saturday, September 7, 2024 that it is not the sole purchaser of all products from the Dangote Refinery. It said the refinery is free to sell its petrol to any marketer it chooses to.
Olufemi Soneye, the chief corporate communications officer of NNPC Ltd, disclosed this in a statement on Saturday.
The NNPC Ltd made this known in response to a statement that the Dangote Refinery Limited is being undermined by the company’s actions.
The Muslim Rights Concern, MURIC, reported that the Dangote Refinery cannot offer lower prices due to recent changes in the pump price of petrol and that the NNPC Ltd has now become the sole supplier of all products from the refinery.
The NNPC stated that global market forces determine the price of petroleum products from any refinery, including Dangote Refinery, in its statement on Saturday. It added that the recent changes in petrol prices do not affect Dangote Refinery or any other domestic refinery’s access to the Nigerian market.
“The attention of the NNPC Ltd has been drawn to a press release by the Muslim Rights Concern, MURIC, which claims that the Dangote Refinery Limited (DRL) is being undermined by actions of the Nigerian National Petroleum Company Limited (NNPC Ltd). 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 off-taker of all products from the refinery.
“To set the records straight, NNPC Ltd wishes to further state as follows: The pricing of petroleum products from any refinery, including the Dangote Refinery Ltd (DRL), is determined by global market forces.
“The recent changes in PMS prices have no impact on the DRL or any other domestic refinery’s access to the Nigerian market,” Mr Soneye said.
The NNPC spokesperson explained that if current prices are perceived as high, it would be a good chance for the refinery to sell its products at cheaper 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 Dangote Refinery Limited.”
According to him, the NNPC Ltd will only fully take over petrol from the Dangote refinery if the market prices of petrol are higher than the pump prices in Nigeria.
The Dangote Refinery and any other domestic refineries are free to sell to any marketer on a willing buyer, willing seller basis, as per current practice for all fully deregulated products, he further clarified.
He stated that NNPC Ltd does not intend to be the distributor for any entity in a free market environment, and therefore, the notion of becoming a sole off-taker is not a possibility.
“The NNPC Ltd cannot undermine a business in which it holds a billion-dollar stake. As an advocacy group for fair and just treatment, MURIC should have verified the facts before making statements that are entirely flawed and have the potential to incite ordinary Nigerians against the NNPC Ltd,” he said.
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