Akinwande Soji-Ojo
The Nigerian National Petroleum Company Limited(NNPCL) has denied reports that it intends to become Dangote refinery’s sole distributor.
In a statement on Saturday, entitled, “NNPC Ltd Not the Sole Offtaker; Market Open to Lower Prices from Any Domestic Refinery,” signed by the company’s Chief Corporate Communications Officer, Olufemi Soneye, NNPCL addressed allegations by the Muslim Rights Concern (MURIC), accusing it of undermining the Dangote refinery and monopolising the offtake of all products from the 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).
“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,” Soneye said.
According to NNPCL, the recent changes in petrol prices have no impact on Dangote refinery 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,” he said.
Soneye added that there is no guarantee domestic refining would lead to lower prices compared to global parity pricing, stressing that NNPCL would only fully offtake petrol from Dangote refinery if market prices 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,” the statement added.
NNPCL said it cannot undermine a business in which it holds a billion-dollar stake, adding that “MURIC should have verified the facts before making flawed statements that risk inciting the public against the company.”
