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). Specifically, MURIC
asserts that recent changes to the pump price of Premium Motor
Spirit (PMS) will prevent the Dangote Refinery from offering lower
prices and that NNPC Ltd has become the sole offtaker of all products
from the refinery.
To set the records straight, NNPC Ltd wishes to further state as follows:
1. 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. 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.
2. 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 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 offtaker does not arise.
3. The NNPC Ltd cannot undermine a business in which it holds a
billion dollar stake.
4. 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.
Olufemi Soneye
Chief Corporate Communications Officer
NNPC Ltd
Abuja
6th September, 2024
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