The Presidency in a statement clarified the government’s position on the ongoing price dispute between the Nigerian National Petroleum Company Limited and Dangote Refinery.
Officials highlighted that both entities operate as private enterprises, which precludes government agencies from intervening in their pricing negotiations.
In a statement on Friday, the Special Assistant to the Honourable Minister for Petroleum Resources (Oil), Senator Heineken Lokpobiri, on media, Nnaamaka Okafor, the Presidency corroborated the minister’s stand on the pricing feud between the NNPCL and Dangote Petroleum Refinery.
In a recent statement, Minister of State for Petroleum Resources, Heineken Lokpobiri, noted that following his meeting with Vice President Kashim Shettima, the price of petrol in Nigeria may vary across different locations.
However, he emphasized that once there is consistent availability of products nationwide, prices are expected to stabilize.
The minister further emphasized that the petroleum sector is deregulated, meaning the government is not responsible for setting prices.
This allows market dynamics to dictate pricing, reinforcing the importance of product availability to achieve stability.
The minister had said, “What is important is that the government is not fixing prices. This sector is deregulated. And we believe that with the availability of products, the price will find its level. And this is important for Nigerians to know.
“There is enough product in the country to be able to meet the demands of Nigerians, there should be no panic buying. And we also believe that Nigerians need to know that the government is not fixing prices. That is what I want to convey to Nigerians.”
However, Okafor in the statement on Friday, noted that while corroborating this during a press briefing, the Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, also emphasised what Lokpobiri had said earlier that both entities operate independently in a deregulated market.
He stated that under the Petroleum Industry Act, the Nigerian National Petroleum Company Limited (NNPCL) operates autonomously, despite being government-owned. This autonomy allows NNPCL to make independent decisions regarding its operations and pricing.
“The PMS (Premium Motor Spirit) field, the PMS regime, has been deregulated. Dangote is a private company. NNPCL should not forget it’s a limited liability company. Whatever controversy both of them are having is their own problem.
“They are operating, even if you go by the terms of petroleum industry act NNPCL is on its own, even though it’s owned by the federal government, the state government and local councils and everything, but it’s operating as a limited liability company.
“So my answer is that, as far as this is concerned, the government is not dabbling into this controversy. Dangote as a private company is working on his own. NNPC is a limited liability company, and it has the right to fix the price of its own and so on,” the statement quoted Onanuga to have said.
Onanuga added that rather than intervening in pricing disputes, the government aims to promote alternative energy solutions, such as Compressed Natural Gas.
This initiative will provide consumers with a more affordable option, alongside subsidies for the conversion costs of vehicles to CNG.
