By Joke Kujenya
THE NIGERIAN National Petroleum Company Limited (NNPC Ltd) has addressed recent allegations by the Muslim Rights Concern (MURIC) regarding its relationship with Dangote Refinery Limited (DRL).
MURIC had claimed that recent changes in the pump price of Premium Motor Spirit (PMS) were designed to prevent DRL from offering competitive prices and alleged that NNPC Ltd had become the sole off-taker for all products from the refinery.
NNPC Ltd clarified that global market forces dictate the pricing of petroleum products, including those from Dangote Refinery.
It emphasized that recent adjustments to PMS prices in Nigeria do not restrict DRL’s access to the Nigerian market.
On the contrary, the current market conditions provide an opportunity for the refinery to introduce lower prices if deemed feasible.
Contrary to MURIC’s claims, NNPC Ltd stated that there is no guarantee that domestic refining will lead to lower prices, as prices follow global parity frameworks.
The company reiterated that it would only fully offtake PMS from DRL if market prices were higher than local pump prices.
However, in a deregulated market, DRL and other refineries are free to sell their products to any buyer based on a willing buyer-willing seller model.
NNPC Ltd dismissed the notion of being the sole distributor for DRL, affirming its commitment to a free-market environment. It further noted that it holds a significant financial stake in DRL, making any actions to undermine the refinery illogical.
In closing, NNPC Ltd urged MURIC to verify information before making public statements that could mislead the public or incite unnecessary tension.
This statement was issued by Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd, in September 2024.
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