The Nigerian National Petroleum Company Limited (NNPCL) has dismissed claims by the Muslim Rights Concern (MURIC) that it is the sole buyer of petrol products from Dangote Refinery.
MURIC had alleged that NNPCL’s actions were hindering Dangote Refinery from offering lower pump prices for Premium Motor Spirit (PMS).
In a statement, NNPCL clarified that domestic refiners, including Dangote Refinery, are free to sell directly to any marketer. The company rejected MURIC’s accusation that NNPCL had raised PMS prices to undermine Dangote Refinery’s efforts to reduce prices.
NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, criticized MURIC’s position as flawed and potentially inciting against the company. He emphasized that the market remains open to lower prices from any domestic refinery and that NNPCL is not the exclusive buyer.
“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.
“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,” he explained.
Sonoye emphasised that “there is no guarantee of lower prices associated with domestic refining compared to any global parity pricing framework, as confirmed by the DRL.”
He said “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.”
He further announced that “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 has the potential to incite ordinary Nigerians against the NNPC Ltd.”
This article was written by Tamaraebiju Jide, a student at Elizade University
