Following the claims by the Muslim Rights Concern (MURIC) that recent changes in the pump price of Premium Motor Spirit (PMS) will hinder the refinery’s ability to offer competitive prices and that NNPC Ltd has become the sole buyer of all products from the Dangote Refinery Limited, the petroleum products regulatory body has reacted.
The Nigerian National Petroleum Company Limited (NNPC Ltd) declared that Dangote and other refineries are free to sell directly to marketers.
The reaction was contained in a post on NNPC X’s handle on Saturday, 7th September 2024.
MURIC suggested that NNPC Ltd is undermining the Dangote Refinery Limited (DRL).
In its response, NNPC Ltd has clarified that the pricing of petroleum products, including those from Dangote Refinery, is influenced by global market forces.
Changes in PMS prices do not affect the refinery’s access to the Nigerian market.
On the contrary, high market prices could provide the refinery with an opportunity to offer lower prices locally.
NNPC Ltd also emphasised that domestic refining does not guarantee lower prices compared to global parity pricing, a point confirmed by DRL.
The company stated that it would only fully purchase PMS from DRL if market prices exceed local pump prices. DRL and other refineries are free to sell directly to marketers under a willing buyer, willing seller basis.
NNPC Ltd has no intention of becoming a distributor in a deregulated market, making the idea of it being the sole offtaker unfounded.
Furthermore, NNPC Ltd highlighted its substantial investment in Dangote Refinery, noting that it has no interest in undermining a business in which it holds a significant stake.
NNPC Ltd also called on MURIC to verify facts before issuing statements that could mislead the public and potentially incite negative sentiments against the company.
