The Nigerian National Petroleum Company Limited (NNPCL) has refuted a report which alleged that it is undermining the effort of the Dangote Refinery Limited (DRL).
The NNPCL on Saturday strongly denied the accusation made against it by the Muslim Rights Concern (MURIC) which suggested that the state-run oil company is working against the interests of Dangote Refinery.
The company in a press release signed by the Chief Corporate Communications Officer, Olufemi Soneye said the NNPCL is not the sole offtaker, adding that the oil market is open to lower prices from any domestic refinery.
“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),” Soneye said.
“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: 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.”
Furthermore, the NNPCL emphasized 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. said it 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,” Soneye said.
He added that the NNPCL 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.
According to him, the NNPCL cannot undermine a business in which it holds a billion-dollar stake.
“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,” Soneye said.
