The Nigerian National Petroleum Company Limited (NNPCL) has clarified that it is not going to be the sole offtaker of products of the Dangote Refinery Limited (DRL), especially Premium Motor Spirit (PMS), otherwise known as petrol.
This was as it stated that, rather than the NNPCL, it is global market forces that determine prices of PMS. It asserted that the Nigerian market is open to lower prices from any domestic refinery.
NNPCL made the clarifications in a press release by its Chief Corporate Communications Officer, Olufemi Soneye, dated 7 September, 2024.
The clarifications were a reaction to a statement by the Muslim Rights Concern (MURIC) that NNPCL is undermining Dangote Refinery Limited (DRL).
MURIC had specifically alleged that recent changes to the pump price of PMS will prevent DRL from offering lower prices. It also accused NNPCL of becoming the sole offtaker of all products from the refinery.
NNPCL however denied the allegations and urged MURIC to verify its claims and stop making flawed statements that are capable of inciting the public against the company.
“The attention of the NNPCL 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 (NNPCL).
“Specifically, MURIC asserts that recent changes to the pump price of PMS will prevent the Dangote Refinery from offering lower prices and that NNPCL has become the sole offtaker of all products from the refinery,” it was stated in the release.
However, in order to set the record straight, NNPCL further stated in the release as follows:
“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.
“In fact, if current prices are perceived as high, it presents an ideal opportunity for the refinery [DRL] to sell its products at lower prices in the Nigerian market.”
NNPCL also emphasised that there was no guarantee of lower prices associated with domestic refining, compared to any global parity pricing framework, as confirmed by the DRL.
Soneye further disclosed that NNPCL 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.
“NNPCL 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,” he added.
The NNPCL Chief Corporate Communications Officer further asserted that the company “cannot undermine a business in which it holds a billion dollar stake.”
The NNPCL therefore urged MURIC, which claimed to be an advocacy group, to verify its claims, in the spirit of fairness and just treatment.
“As an advocacy group for fair and just treatment, MURIC should have verified the facts before making statements that are entirely flawed and has the potential to incite ordinary Nigerians against the NNPCL,” Soneye added in the release.
