The Nigerian National Petroleum Company Limited (NNPC Ltd) has clarified that it is not the sole offtaker of all products from the Dangote Refinery, as claimed by the Muslim Rights Concern (MURIC).
The Islamic human rights organisation had alleged that the recent changes to the pump price of Premium Motor Spirit (PMS) would prevent the Dangote Refinery from offering lower prices and that NNPC Ltd. has become the sole offtaker of all products from the refinery.
However, in a statement on Saturday, September 7, 2024, by the Chief Corporate Communications Officer of the NNPC Ltd., Mr. Olufemi Soneye, the national oil company clarified that the pricing of petroleum products from any refinery, including the Dangote Refinery Ltd. (DRL), is determined by global market forces.
Noting that the recent changes in PMS prices have no impact on the Dangote Refinery Limited or any other domestic refinery’s access to the Nigerian market.
NNPC Ltd. contended that “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 emphasise that there is no guarantee of lower prices associated with domestic refining compared to any global parity pricing framework, as confirmed by the DRL,” it said.
While stating that it would only fully offtake PMS from the DRL if the market prices of PMS are higher than the pump prices in Nigeria, NNPC said 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.
It stressed that it 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.
Adding that, it cannot undermine a business in which it holds a billion-dollar stake.
The company said, as an advocacy group for fair and just treatment, MURIC should have verified the facts before making statements that are entirely flawed and have the potential to incite ordinary Nigerians against the NNPC Ltd.
