The Nigerian National Petroleum Company Limited (NNPC) has dismissed claims by the Muslim Rights Concern (MURIC) suggesting that it is the sole off-taker of petrol products from the Dangote refinery, and it is using such to undermine the refinery from selling petrol at lower prices.
The company disclosed this in a press statement signed by its Chief Corporate Communications Manager, Olufemi Soneye.
MURIC’s statement alleged that NNPC’s actions would prevent the refinery from offering lower pump prices for Premium Motor Spirit (PMS) and that NNPC had become the sole buyer of Dangote Refinery products.
In response, NNPC issued a clarification, stating that petroleum product prices, including those from Dangote Refinery, are dictated by global market forces. The company highlighted that recent changes in PMS prices have no bearing on the refinery’s ability to operate in the Nigerian market.
NNPC emphasized that there is no assurance domestic refining will lead to lower prices compared to global market rates. The company also clarified that it will only offtake products from Dangote Refinery if market prices are higher than the current Nigerian 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.”
Also, NNPC noted that it holds a significant financial stake of up to $1 billion in Dangote Refinery, suggesting undermining the business is baseless and counterproductive.
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.