We’re not the sole buyer of petrol from Dangote Refinery, other marketers allowed – NNPCL

The NNPCL has also debunked rumors that the changes in PMS prices had an impact on Dangote Refinery.

The Nigerian National Petroleum Company Limited (NNPCL) has reaffirmed that it has no intention of becoming the sole off-taker of Dangote Refinery Limited (DRL) or any entity in the free market environment.

This comes following rumors alleging the NNPC of monopoly in a free market system and also taking actions undermining Dangote Refinery.

According to the News Agency of Nigeria, the NNPCL has stated that the refinery and any other domestic refinery were free to sell directly to marketers on a willing buyer and willing selling basis, which is the current practice for all fully deregulated products.

While speaking in Abuja, the Chief Corporate Communications Officer of NNPC Ltd, Olufemi Soneye, debunked claims that DRL was being undermined by NNPCL actions.

He said, “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 is being undermined by actions of NNPC Ltd.

“Specifically, MURIC asserts that recent changes to the pump price of Premium Motor Spirit (PMS) will prevent the Dangote Refinery from offering lower prices.

“It said that NNPC Ltd. has become the sole off-taker of all products from the refinery.”

Soneye stated that the pricing of petroleum products from any refinery is based on global market forces.

He said that the recent increase in PMS prices had no impact on Dangote Refinery or any other refinery access to the Nigerian market.

“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,” he continued.

“We emphasize that there is no guarantee of lower prices associated with domestic refining compared to any global parity pricing framework, as confirmed by Dangote Refinery.

“NNPC Ltd will only fully offtake PMS from the Dangote Refinery if the market prices of PMS are higher than the pump prices in Nigeria.

“NNPC Ltd has no desire or intention to become the distributor for any entity in a free market environment, and therefore, 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.”

He also urged advocacy groups like MURIC should verify their facts first before making statements that were entirely flawed and had the potential to turn Nigerians against NNPCL.