NNPC Clarifies: Dangote Refinery Free to Offer Competitive Prices in Nigerian Market
The Nigerian National Petroleum Company Limited (NNPC Ltd) has responded to claims made by the Muslim Rights Concern (MURIC) that its actions may be undermining the operations of the Dangote Refinery Limited (DRL). In a statement released today by Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd., the company emphasized that the Nigerian market remains open for competitive pricing from any local refinery, including the Dangote Refinery.
The statement comes in response to concerns raised by MURIC, which suggested that recent changes to the pump price of Premium Motor Spirit (PMS) might prevent the Dangote Refinery from offering lower prices. Additionally, the group accused NNPC Ltd. of acting as the sole buyer of products from the refinery, a claim that the NNPC has categorically denied.
“To set the records straight, NNPC Ltd. wishes to further state as follows: The pricing of petroleum products from any refinery, including the Dangote Refinery, is determined by global market forces. 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 said.
The NNPC also stressed that there is no guarantee that domestic refining will result in lower prices compared to the global market, explaining that refineries, including the Dangote Refinery, are free to sell their products directly to any marketer on a “willing buyer, willing seller” basis. The NNPC reaffirmed that it has no desire or intention to act as the sole distributor in a free-market environment.
“The NNPC Ltd. will only fully offtake PMS from the Dangote Refinery if the market prices of PMS are higher than the pump prices in Nigeria,” the statement clarified, underscoring that any refinery, including Dangote, has the freedom to compete in the market without interference from NNPC.
Additionally, the NNPC highlighted that it holds a billion-dollar stake in the Dangote Refinery and would not undermine a business in which it has such a significant investment.
As a final note, NNPC urged advocacy groups like MURIC to verify their facts before making public statements, warning that unverified claims have the potential to mislead the public and incite unnecessary tension.
This clarification is expected to quell concerns about pricing and competition in the domestic petroleum market as the Dangote Refinery nears full operation.
