The Nigerian National Petroleum Company Limited has rejected allegations from the Muslim Rights Concern that it is the exclusive off-taker of petrol from the Dangote refinery and is manipulating the market to prevent lower fuel prices.
This was disclosed in a statement by NNPC’s Chief Corporate Communications Manager, Olufemi Soneye via the company’s official Twitter handle.
The national oil company refuted MURIC’s claims, which suggested that NNPC’s actions were aimed at hindering the refinery from offering reduced prices for Premium Motor Spirit.
NNPC emphasized that the assertion of it being the sole buyer of Dangote refinery products is unfounded.
In response to MURIC’s allegations, NNPC issued a clarification affirming that petroleum product prices, including those from the Dangote Refinery, are determined by global market forces.
The company stressed that recent fluctuations in PMS prices do not impact the refinery’s operational viability in Nigeria.
NNPC underscored that domestic refining does not guarantee lower prices compared to global market rates.
Furthermore, NNPC stated it would only purchase products from Dangote Refinery if market prices exceed the current domestic pump prices.
“It stated, “The attention of the NNPC Ltd 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 (NNPC Ltd).
“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.
“Furthermore, we emphasize that there is no guarantee of lower prices associated with domestic refining compared to any global parity pricing framework, as confirmed by the DRL. 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.
“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.”
NNPC also pointed out that it holds a substantial financial stake of up to $1 billion in Dangote Refinery, arguing that any claims of undermining the refinery’s business are unfounded.
Recall AMBusiness recently reported that recently the NNPCL will be the sole off-taker of petrol from the Dangote refinery after it finally began petrol refining over a year after its commissioning in May 2023.
