The recent claims about the Nigerian National Petroleum Company Limited (NNPC) being responsible for the increase in petrol prices and allegedly trying to monopolize products from the Dangote Refinery Ltd have been strongly denied by the NNPC. The company clarified that the pricing of petroleum products from any refinery, including the Dangote Refinery, is driven by global market forces. This implies that even domestic refineries like Dangote are not immune to the influences of the international market when it comes to product pricing.
The NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, responded to the allegations from the Muslim Rights Concern (MURIC), which suggested that recent petrol price hikes would prevent the Dangote Refinery from offering lower prices and accused the NNPC of being the sole offtaker of the refinery’s products. The NNPC rebutted these claims, asserting that it has no intention or plan to monopolize the market and sell all products from Dangote Refinery.
To emphasize this, the NNPC explained that current changes in petrol prices do not impact the ability of domestic refineries, including Dangote, to sell in the Nigerian market. In fact, if current prices are considered high, it potentially opens an avenue for these refineries to offer competitive lower prices. This is in line with the global parity pricing framework, where domestic refining does not inherently guarantee lower prices.
Moreover, the NNPC clarified its stance on market operations, stating that it will only off-take premium motor spirit (PMS) from the Dangote Refinery if the global market prices are higher than the domestic pump prices. The current practice allows any domestic refinery and marketer to engage in sales on a willing buyer, willing seller basis, further supporting a competitive and deregulated market environment.
Finally, the NNPC emphasized that as a stakeholder with significant investment in the Dangote Refinery, it has no intention of undermining the refinery’s operations. The company called for accurate fact-checking by advocacy groups like MURIC before making potentially inflammatory statements. The NNPC reiterated its commitment to a free market environment and dispelled any notions of monopolizing the offtake from the Dangote Refinery.
Visit our :
Facebook @bulletinnews,
Twitter @thebulletinnews,
Instagram @thebulletinnews,
and TikTok pages.
Please note that every article on this website is original and not copied content. Our reporters across Nigeria and the rest of Africa produce all the content.
Thank you.
