The Nigerian National Petroleum Company Ltd (NNPCL) has confirmed that Dangote Refinery and other domestic refineries are free to sell petroleum products directly to marketers under a willing buyer, willing seller arrangement.
This statement counters recent claims by the Muslim Rights Concern (MURIC) that NNPCL intended to become the sole offtaker of petroleum products from Dangote Refinery, potentially leading to higher fuel prices.
In response to MURIC’s allegations, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, issued a statement on Saturday, dismissing the accusations as “entirely flawed” and misleading.
Soneye emphasized that the NNPCL has no intention of monopolizing the market or controlling the distribution of petroleum products from Dangote Refinery or any other domestic refinery.
“The pricing of petroleum products from any refinery, including the Dangote Refinery Ltd (DRL), is determined by global market forces,” Soneye explained.
He clarified that recent changes in the price of Premium Motor Spirit (PMS), commonly known as petrol, do not impact the ability of the Dangote Refinery or any other domestic refinery to sell their products in the Nigerian market.
“In fact, 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,” he added.
Soneye also noted that there is no guarantee that domestic refining will lead to lower prices compared to global pricing standards.
“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,” he said.
This means that the Dangote Refinery and other domestic refineries have the flexibility to operate independently in the market, selling directly to any marketer without interference from NNPCL.
The NNPCL further emphasized its commitment to a free market environment, where it has no desire to become the sole distributor for any entity.
“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 stated.
Addressing MURIC’s concerns, Soneye criticized the organization for not verifying the facts before making claims that could potentially incite public sentiment against NNPCL.
“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 the NNPC Ltd,” he concluded.