Dangote Refinery Free to Sell Petrol Directly to Marketers – NNPCL

• NNPCL clarifies that Dangote Refinery can sell directly to marketers, dismissing claims of becoming the sole offtaker for petrol products
• The NNPCL emphasizes that global market forces determine petrol pricing, and recent price changes do not affect Dangote Refinery’s operations

The Nigerian National Petroleum Company Ltd (NNPCL) has clarified that Dangote Refinery and other domestic refiners are “free to sell directly to any marketer on a willing buyer, willing seller basis,” dismissing claims that the national oil company would become the sole offtaker.

This response came following allegations by the Muslim Rights Concern (MURIC) that the NNPCL had increased the price of Premium Motor Spirit (petrol) to undermine Dangote Refinery’s efforts to lower the cost of petroleum products in Nigeria. MURIC, through a statement by its Executive Director, Professor Ishaq Akintola, urged the NNPCL to allow Dangote Refinery to operate without undue interference.

Olufemi Soneye, the Chief Corporate Communications Officer at NNPCL, countered MURIC’s claims in a statement on Saturday, calling them “entirely flawed” and potentially inciting Nigerians against the NNPC Ltd.

Soneye stated that the NNPCL is not the sole offtaker and that the market is open to any domestic refinery providing lower prices. He emphasized, “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 DRL or any other domestic refinery’s access to the Nigerian market.”

He added that if current prices are perceived as high, this provides an opportunity for the Dangote Refinery or any other domestic refinery to sell their products at lower prices in the Nigerian market.

Soneye further clarified, “As confirmed by the DRL, There is no guarantee of lower prices associated with domestic refining compared to any global parity pricing framework.”

He explained that “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.”

Soneye also declared that “NNPC Ltd cannot undermine a business in which it holds a billion-dollar stake.”

He concluded by advising that “MURIC, as an advocacy group for fair and just treatment, should have verified the facts before making entirely flawed statements and have the potential to incite ordinary Nigerians against the NNPC Ltd.”