The Nigerian National Petroleum Company (NNPC) has countered the Muslim Rights Concern (MURIC), which recently claimed that Dangote Refinery Limited was being undermined by the actions of the national oil company.
MURIC had recently averred that recent changes to the pump price of premium motor spirit (PMS) would prevent Dangote refinery from offering lower prices, but the NNPC has dismissed the claim, saying that pricing of petroleum products from any refinery, including the Dangote refinery, is determined by global market forces.
In a statement signed by Olufemi Soneye, NNPC’s chief corporate communications officer, the national oil company said recent price changes in PMS have no impact on Dangote refinery or any other domestic refinery’s access to 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.
“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,” NNPC said.
It noted that Dangote refinery or any other domestic refinery is free to sell directly to any marketer on a willing buyer, willing seller basis, which is the current practice for all fully deregulated products.
It further explained that the national oil company has no desire or intention to become the distributor for any entity in a free market environment, stressing that the notion of becoming a sole off-taker does not arise.
“The NNPC Ltd. cannot undermine a business in which it holds a billion-dollar stake,” NNPC said.
“As an advocacy group for fair and just treatment, MURIC should have verified the facts before making statements that are entirely flawed and has the potential to incite ordinary Nigerians against the NNPC Ltd,” the oil company said.
