The Nigerian National Petroleum Company Limited (NNPC Ltd) has addressed claims made by the Muslim Rights Concern (MURIC) regarding its role in the domestic oil market and its alleged impact on Dangote Refinery Limited (DRL). MURIC had suggested that recent changes in Premium Motor Spirit (PMS) prices would hinder DRL’s ability to offer lower prices and accused NNPC Ltd of becoming the sole offtaker of products from the refinery.
Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd, issued the statement from Abuja, reaffirming the company’s commitment to a fair and open petroleum market.
Market Pricing Dynamics: The pricing of petroleum products from any refinery, including Dangote Refinery, is influenced by global market forces. Recent adjustments in PMS prices do not restrict DRL or any domestic refinery from participating in the Nigerian market. NNPC Ltd noted that current pricing levels could provide DRL an opportunity to offer more competitive prices.
Market Participation: NNPC Ltd emphasized that domestic refining does not inherently guarantee lower prices compared to global pricing frameworks. NNPC Ltd will only fully offtake PMS from DRL if the market prices exceed Nigerian pump prices. Refineries, including DRL, are free to sell directly to any marketer on a willing buyer, willing seller basis, which is the norm in a deregulated market. NNPC Ltd reiterated it has no intention of becoming a sole distributor in a free market environment.
Stakeholder Commitment: NNPC Ltd highlighted that it holds a significant investment in DRL, making it counterintuitive for the company to undermine DRL’s business.
Call for Fact-Checking: NNPC Ltd urged MURIC, as an advocacy group for fairness, to verify facts before issuing statements that could mislead the public and stir unwarranted sentiments against NNPC Ltd.
