The Nigerian National Petroleum Company Limited (NNPCL) has denied allegations from the Muslim Rights Concern (MURIC) that it is hindering the operations of the Dangote Refinery.
MURIC had raised concerns that recent changes in the pump price of Premium Motor Spirit (PMS) would prevent the Dangote Refinery from offering competitive prices.
In a statement issued by Olufemi Soneye, Chief Corporate Communications Officer at NNPCL, the company clarified that the pricing of petroleum products from any refinery, including Dangote Refinery, is dictated by global market forces.
NNPCL emphasised that domestic refineries, such as the Dangote Refinery, are free to sell directly to marketers on a willing buyer, willing seller basis.
The company also stated that it would only fully offtake PMS from Dangote Refinery if global market prices are higher than local pump prices.
MURIC had accused NNPCL of acting as the sole offtaker of products from Dangote Refinery and urged the government to protect the refinery from undue interference.
The statement partly read, “To set the records straight, NNPC Ltd. wishes to further state as follows:
“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.
“The NNPC Ltd. cannot undermine a business in which it holds a billion-dollar stake,” the statement added.
Follow the Parallel Facts channel on WhatsApp: https://whatsapp.com/channel/0029VaCQSAoHgZWiDjR3Kn2E
