The Nigerian National Petroleum Company Limited (NNPCL) has debunked claims made by the Muslim Rights Concern (MURIC) that it is undermining the operations of Dangote Refinery Limited (DRL).
In a press release, NNPC Ltd. stated that it is not the sole offtaker of products from the Dangote Refinery, and any domestic refinery can enter the market to offer lower prices for Premium Motor Spirit (PMS).
The statement, signed by NNPCL Chief Corporate Communications Officer, Olufemi Soneye, was a response to MURIC’s assertion that recent changes in PMS prices would inhibit Dangote Refinery’s ability to offer more affordable fuel and suggested that NNPCL had monopolized the distribution of the refinery’s products.
“The pricing of petroleum products from any refinery, including the Dangote Refinery Ltd. (DRL), is determined by global market forces,” NNPCL clarified. It added that recent adjustments to PMS prices would not restrict DRL or any other domestic refinery from participating in Nigeria’s 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,” the statement continued.
NNPCL emphasized that it does not control the domestic refining sector and that any refinery, including DRL, can sell its products directly to marketers based on a “willing buyer, willing seller” model. This was reinforced by NNPCL’s assertion that it would only fully offtake PMS from Dangote Refinery if the market prices were higher than local pump prices.
“There is no guarantee of lower prices associated with domestic refining compared to any global parity pricing framework, as confirmed by DRL,” NNPC added. It also dismissed the notion that it seeks to monopolize product distribution. “The NNPC Ltd. has no desire or intention to become the distributor for any entity in a free market environment.”
In response to MURIC’s claims, NNPC stressed its significant investment in the Dangote Refinery, underlining the unlikelihood of undermining a business in which it holds a substantial financial stake. “NNPC Ltd. cannot undermine a business in which it holds a billion-dollar stake,” the company noted.
The statement concluded by criticizing MURIC for failing to verify the facts before making claims that “are entirely flawed and have the potential to incite ordinary Nigerians against the NNPC Ltd.”
NNPC’s response highlights the evolving dynamics of Nigeria’s deregulated petroleum market, where local refineries, including the Dangote Refinery, are expected to play a crucial role in shaping competitive pricing in the near future.
