NNPC Dismisses Allegations Regarding Sole Off-Taker of Dangote Refinery Petrol Sales
The Nigerian National Petroleum Company Limited (NNPC) has categorically refuted claims made by the Muslim Rights Concern (MURIC) that it is undermining the Dangote Refinery’s ability to offer lower-priced petrol.
The accusations suggested that NNPC’s position as the sole off-taker of petroleum products from the Dangote Refinery could hinder the refinery from selling Premium Motor Spirit (PMS) at competitive rates.
In a press statement signed by NNPC’s Chief Corporate Communications Manager, Olufemi Soneye, the company clarified that its role in the refining and distribution of petroleum products is determined by global market dynamics, rather than any deliberate attempt to suppress prices.
MURIC’s allegations implied that NNPC’s involvement would prevent the refinery from reducing pump prices for petrol.
However, NNPC’s statement explained that the pricing of petroleum products, including those from Dangote Refinery, is influenced by global market forces, not NNPC’s actions.
The company emphasised that fluctuations in PMS prices do not affect the refinery’s capacity to operate or offer products in the Nigerian market.
NNPC further stressed that domestic refining does not automatically translate to lower prices, as global parity pricing continues to influence local rates.
“There is no assurance that domestic refining will result in lower prices compared to global market rates,” the statement noted.
The company also clarified that it would only purchase PMS from Dangote Refinery if the market prices are higher than Nigeria’s current pump prices, maintaining its commitment to market-based operations.
Responding to the insinuation that NNPC was monopolising the Dangote Refinery’s products, the statement reiterated that both Dangote Refinery and any other domestic refinery in Nigeria are free to sell directly to any buyer under a willing buyer, willing seller arrangement.
This, NNPC stated, is consistent with the fully deregulated framework for petroleum products.
NNPC also highlighted its financial involvement in the Dangote Refinery, underscoring the illogicality of undermining the business.
“NNPC holds a financial stake of up to $1 billion in Dangote Refinery, and any suggestion of undermining the business is baseless and counterproductive,” the statement added.
Recent reports had suggested that NNPC would become the sole off-taker of petrol from the Dangote Refinery following the refinery’s commencement of petrol refining operations over a year after its official commissioning in May 2023.
However, NNPC’s statement laid these concerns to rest, assuring that the Dangote Refinery remains free to operate independently in Nigeria’s deregulated petroleum market.
