- NNPCL refutes MURIC’s claims, stating Dangote Refinery pricing is determined by global market forces, not NNPCL actions
- NNPCL clarifies it has no intention of becoming sole offtaker, as Dangote Refinery is free to sell directly to marketers
The Nigerian National Petroleum Company Limited (NNPCL) has refuted recent claims by the Muslim Rights Concern (MURIC) regarding petrol pricing. MURIC had alleged that the recent changes to the pump price of Premium Motor Spirit (PMS), commonly known as petrol, would prevent the Dangote Refinery from offering lower prices, and claimed that NNPCL had become the sole offtaker of all products from the refinery.
In response, Olufemi Soneye, NNPCL’s Chief Corporate Communications Officer, stated on Saturday that the pricing of petroleum products from any refinery, including the Dangote Refinery, is determined by global market forces. He emphasized that recent changes in PMS prices have no impact on the Dangote Refinery or any other domestic refinery’s access to the Nigerian market.
NNPCL highlighted that if the current prices are perceived as high, it could provide an opportunity for the refinery to offer lower prices in the Nigerian market. However, it clarified that there is no guarantee that domestic refining will necessarily result in lower prices compared to global market rates, as confirmed by the Dangote Refinery.
The statement added that NNPCL would only fully offtake PMS from the Dangote Refinery if market prices of PMS were higher than the pump prices in Nigeria.
The NNPCL statement reads:
“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 offtaker of all products from the refinery.
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.
If current prices are perceived as high, the refinery would have an ideal opportunity to sell its products at lower prices in the Nigerian market.
Furthermore, we emphasize that, as confirmed by the DRL, lower prices associated with domestic refining are not guaranteed compared to any global parity pricing framework. 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.
The NNPC Ltd cannot undermine a business with 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 NNPC Ltd.”
NNPCL reiterated that the Dangote Refinery and other domestic refineries are free to sell directly to marketers on a “willing buyer, willing seller” basis. The company emphasized that it has no intention of becoming the sole distributor in a deregulated market environment, and it dismissed MURIC’s claims as unfounded and misleading.
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