By Ihechi Enyinnaya
The Nigerian National Petroleum Company Ltd (NNPC Ltd) has responded to recent claims by the Muslim Rights Concern (MURIC), which alleged that the company’s actions are undermining the Dangote Refinery Limited (DRL). MURIC’s press release suggested that changes to the price of Premium Motor Spirit (PMS) could prevent DRL from offering competitive prices and that NNPC Ltd has become the exclusive buyer of all products from the refinery.
In a statement, Olufemi Soneye, Chief Corporate Communications Officer at NNPC Ltd, clarified that the pricing of petroleum products from any refinery, including DRL, is influenced by global market dynamics. Recent adjustments in PMS prices do not impact DRL’s or other domestic refineries’ market access. Rather, high current prices could present an opportunity for the refinery to offer lower prices in the Nigerian market.
Soneye further emphasized that there is no inherent advantage in domestic refining compared to international pricing frameworks. NNPC Ltd will only purchase PMS from DRL if market prices exceed domestic pump prices. Refineries, including DRL, are free to sell directly to any marketer under the willing buyer, willing seller principle, which applies to all deregulated products. NNPC Ltd has no intention of becoming a distributor in a free market, countering claims of being the sole offtaker.
Additionally, Soneye stated that NNPC Ltd’s significant financial stake in DRL precludes any actions to undermine the refinery. He urged MURIC to verify their information before making such claims, as misinformation could mislead the public and create unnecessary tension.