The Nigerian National Petroleum Company Limited (NNPC Ltd) has addressed claims that it intends to be the sole buyer of petrol produced by the Dangote Refinery Limited (DRL), stating that it has no such plans or desire. This clarification comes in response to a statement made by the Muslim Rights Concern (MURIC), which suggested that recent changes to petrol prices would prevent the Dangote Refinery from offering lower prices to Nigerians.
MURIC had expressed concerns that the NNPC Ltd was acting as the sole offtaker of products from the Dangote Refinery, thereby limiting the refinery’s ability to sell its products to other buyers. The group argued that this move could be to the detriment of Nigerian consumers, who might benefit from more competitive pricing.
However, in a statement released on Saturday by Olufemi Soneye, NNPC Ltd’s Chief Corporate Communications Officer, the company dismissed these claims. NNPC Ltd emphasized that the pricing of petroleum products, including those from the Dangote Refinery, is determined by global market forces, and not by any one company.
The NNPC Ltd explained that changes in petrol prices do not affect the Dangote Refinery or any other domestic refinery’s ability to sell in the Nigerian market. In fact, if prices are perceived as high, the company noted that this creates an opportunity for the Dangote Refinery to offer products at lower prices.
“Domestic refineries, including DRL, are free to sell directly to any marketer on a willing buyer, willing seller basis, which is the current standard for all deregulated products,” the statement said. NNPC Ltd also highlighted that it will only fully purchase products from the Dangote Refinery if the global market prices exceed the pump prices within Nigeria.
Furthermore, NNPC Ltd made it clear that in a deregulated market, it does not intend to act as the sole distributor for any entity. The company stated, “The notion of becoming a sole offtaker does not arise, as NNPC Ltd. has no interest in controlling the distribution of products in a free market environment.”
The company also refuted MURIC’s claims of undermining the Dangote Refinery, pointing out that NNPC Ltd holds a significant financial stake in the refinery and would not act in a manner detrimental to its success. NNPC Ltd urged advocacy groups like MURIC to verify facts before making potentially misleading statements that could incite public concern.
In conclusion, NNPC Ltd reaffirmed that the Dangote Refinery, like any other refinery in Nigeria, is free to operate in the market without restrictions and can sell its products to any willing buyer. The company’s stance aligns with its commitment to supporting a fully deregulated market that encourages competition and fairness.
